Tuesday's Tip in Honor of National Estate Planning Awareness Week
Tip of the Day
Review your current beneficiaries and make sure you identify contingent beneficiaries for all of your accounts such as life insurance policies, annuity contracts, IRA's, 401K, and other retirement accounts.
Even if you have a will or trust, those legal documents don't trump the beneficiary listed directly on your accounts. Be sure to check your beneficiaries once a year and update them, especially if you've had a divorce or death in your family.
"Life insurance isn't subject to Federal Estate taxes."
The good news is life insurance death benefits are generally not subject to Nebraska's Inheritance tax or Federal Income Taxes. But these payouts may be subject to Federal Estate taxes. To avoid these taxes, an estate planning attorney can create an irrevocable life insurance trust.