Video Transcript

Hi. This is Walter Pardo. You can visit us at WFPTaxPartners.com. The question is how do you avoid the state tax on your life insurance. Well, the first thing is, if you are the owner of the policy, then whoever the owner of the policy and you die, the money goes into your estate. So, the first way to avoid a state taxes is by not dying with a policy that you own. So what do you do? You have outside policies. There are strategies that incorporate creating a trust, an insurance, life insurance trust. It can be created in order to do that, and the money will go to the heirs tax free. But if you die with the ownership of that life insurance, the beneficiaries will get that, but that number is added to the estate tax number, so for state or federal it's a big no-no, but if you need to answer any more questions regarding this, please give me a call - Walter Pardo at 877-714-2362. Thanks.