Re: AVOID ESTATE TAXES

From: Jeff Salisbury <jeff.salisbury@xmission.com>
Subject: Re: AVOID ESTATE TAXES
Date: Tue, 28 Dec 1999 10:08:33 -0700

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"Jacqueline D. Richardson" wrote:
> 
> --- Jeff wrote:
> So, to summarize, this technique works best when:
> 
> 1. You have an asset you want to transfer to your heirs.
> 
> 2. You are willing to give up the asset in return for an life-time
> annuity income stream.
> 
> 3. The asset is capable of producing enough income to fulfill the
> annuity income stream obligation.  This requirement is usually easier to
> fulfill than you may think.
> 
> 4. As a bonus, the private annuity can be used to defer capital gains
> taxes.  I'll talk about this in reply to your posting about capital
> gains.
> --- end of quote ---
> 
> If I am reading this correctly you are transferring ownership to your heirs (in my case, my sons).  What happens if they should get divorced?  Does/could this asset, say an apartment building, get split up/lost in the divorce settlement?  If so, what happens to my income I was counting on for my golden years?
> Thanks
> Jackie in VT
> Jacqueline.D.Richardson@Hitchcock.org
> 
> -

Jackie,

Until you die, the asset is held in trust for the future benefit of your
heirs.  Full ownership does not actually pass to your heirs until you
die.  Therefore, the asset (and your retirement income) would be
shielded from any of your sons' divorce settlements while you are alive.

Regards,

Jeff

- -

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