According to the American Taxpayer Relief Act 2012, estate taxes charged by the federal government have become permanent for people who have estates worth more than $5 million, which is $10 million for couples. The laws are fixed, unless the Congress enacts a new law on estate tax, which is far-fetched. While this new law has relieved many people, some still prefer the exemption amount to be set a little lower at $350,000. Permanence means that the annuity clients and advisors can now generate unique estate plans that provide the assurance that federal estate taxes still exist for estates worth more than $5 million. However, annuity advisors can also benefit by using permanency of the law in discussing the importance of certainty with clients, and how annuity is a perfect tool to build financial security.
Annuity advisors can also use the estate tax law to discuss such facts with the clients who are now refraining from making a new purchase in an annuity. While most annuity clients don’t have estates worth more than $5 million, it might seem to be less odd discussing estate tax law to them. However, this idea can sell good for annuity advisors who make recommendations for life insurance as well. Moreover, clients of high net worth may also be interested in the issue of longevity and liquidity purposes. And that won’t rule out the benefits of annuities as well. Private annuities are always an option in estate tax law.
Annuity advisors providing consultation and knowledge of estate tax law are expected to pave the way for the law, explaining the issue of certainty associated with it, and how annuities can help in delivering the best results for investors seeking security. There are more facts to estate tax law or annuities, but at least the advisors can give a flavor of the whole thing for better understanding of the clients.
