BNP Montaigne

Do you wish that you could hire an objective expert in life insurance, estate planning, income taxes and finance to act as a consultant on a fee only basis? Sometimes you are dealing with a complicated life insurance transaction such as premium financing or a split-dollar arrangement. You are looking for an expert to evaluate the efficacy and utility of the transaction.

The value of life insurance policies is important anytime there is a change in ownership. Some changes in ownership can trigger unfavorable income tax consequences such as having the proceeds includable in the estate or having the proceeds subject to income tax.

However, depending on the company and the policy, you may get a number having no basis in reality; several numbers with the caveat that your professional should choose the appropriate one; or some companies won't give you anything at all.Additionally there are some situations where that value is not usable: when fair market value is the consideration.

The expert in a litigation involving life insurance is crucial. Litigators for the most part don't know and understand transactions involving life insurance and don't know what to look for in the documents produced in discovery. An expert with the knowledge, experience and credentials can make the case.

People buy life insurance for what it does, not what it's called. The first step in determining if life insurance is appropriate is to think about your inevitable demise. What if you die tomorrow? What if you don't die for many many years? Those are the very broad questions. The answers are not short or simple.

RICHARD L. HARRIS specializes in life insurance sales and consulting for high-net-worth individuals and their advisors. For over four decades, he has been a trusted expert for accountants, attorneys and trust officers. He holds the professional designations of Chartered Life Underwriter and Accredited Estate Planner.