What is the name of your state? California
I currently own a Term life insurance policy. My girlfriend and I have been living together for 17 years and she is the beneficiary.
I have just realized that if I die, the term life will pay out to her and she will not have to pay tax on it. However, the payout will be part of my estate (which she is the beneficiary thru a living trust) and be subject to estate taxes.
Will transfering ownership to my girlfriend invoke a gift tax? I know that universal and other insurance does because there is a value at transfer. But what about term life?
I currently own a Term life insurance policy. My girlfriend and I have been living together for 17 years and she is the beneficiary.
I have just realized that if I die, the term life will pay out to her and she will not have to pay tax on it. However, the payout will be part of my estate (which she is the beneficiary thru a living trust) and be subject to estate taxes.
Will transfering ownership to my girlfriend invoke a gift tax? I know that universal and other insurance does because there is a value at transfer. But what about term life?