Now that April 15th has passed, it’s time to be sure that all accountants are aware of life settlements. Why? Tax time is when they are most up-to-date on their clients’ finances.
Many accountants remain unaware of life settlements as an alternative to the lapse or surrender of a policy. Introducing them to or reacquainting them with life settlements can be a great door opener for you, and a great way for them to be of added value to their clients. Sharing information about settlements is a terrific way to differentiate you from the competition.
In 2015, per the American Taxpayer Relief Act of 2012 (ATRA), the estate tax exemption is $5.43 million for individuals and, with portability, $10.86 million for married couples. As a result, many clients may no longer need as much life insurance to pay estate taxes. These unneeded policies often have hidden value and can represent outstanding prospects for life settlements.