An ILIT Might Fit
Tax Liability Could Come Down to Who Owns Your Life Insurance Small–business owners are an easy target for the estate tax. They are often worth enough that their estates could be subject to the death levy, but they may not be so well off that they have access to the tools used by the überwealthy to help shield their assets. In 2007 and 2008, all estate assets that remain after exercising the $2 million exemption are subject to a 45% tax rate. In 2009, the exemption jumps to $3.5 million, but the tax rate remains at 45%. The estate tax…