Which is a better option as far as the tax implication:I have key man insurance where the business received the proceeds after death to then...

Question

Which is a better option as far as the tax implication:

I have key man insurance where the business received the proceeds after death to then pay the estate for my shares of the business stock. OR should I have life insurance where the proceed go directly to my wife? Who and where is the higher tax consequenses?

Answer

So, what would these shares likely be worth on the date of your demise and

how could anyone really know for sure?

Assuming the above to be essentially unanswerable, the life insurance option payable directly to your wife would seem like a "no brainer", so to speak (my opinion).

In regard to question #2 , I haven't a clue.

Answer

Dear Sir/Madam,

An experienced business law/tax attorney should be able to handle this type of matter. I handle this type of matter. I have 30+ years of experience and further information about my tax/law practice is at www.beatsonlaw.com

Please call or e-mail me if I can help you now or in the future. Thank you.

Sincerely,

Bob Beatson, 11-25-2013, 11:05 p.m. EST

---

Law Offices of Robert Beatson II

9818 Glynshire Way

Potomac, MD 20854

Tel/Fax 301-340-2951

email: [email protected]/* */

website: www.beatsonlaw.com

Practice areas: Tax, business law, computer/high tech/biotech law, intellectual property, trusts/estates/wills, real estate, civil litigation, mediation.

Licensed to practice law in: DC, MD, VA, and NY

ABA Member since 1980