To view this email as a web page, click here.                                                                                                      October 30, 2007

Have you noticed?  We have a new feature that debuted this fall titled “The Advanced Markets Case of the Week”.  This column is written to give you sales ideas that you can implement immediately with clients – of course with the support of The Potomac Group’s outstanding Advanced Markets Team! 

Be sure to read this column each week to learn new concepts as well as the “oldies but goodies.”  Our Advanced Markets Team is here to help you take a sales idea from concept to close!

Liz Weber, SVP, Advanced Markets
The Potomac Group
 

Case of the Week: Special Estate and Gift Tax Consequences for Non-citizen Spouses

Do you have affluent clients who are not citizens of the United States, but either own property or live in the U.S.?  If so, then they could be facing significant estate and gift tax problems.

Did you know?
Property Subject to Tax: If an individual is a citizen or non-citizen resident alien of the United States, U.S. transfer tax rules will be applied to their worldwide assets (i.e., all property owned by the individual regardless of its location).

Jointly Owned Property: For marriages where one spouse is a non-citizen, jointly owned property is NOT treated as if each spouse provided equal consideration.

The Marital Deduction: No “unlimited” marital deduction is available for transfers to a non-citizen spouse unless such property passes into a qualified domestic trust (QDOT) or the surviving spouse becomes a U.S. citizen prior to the due date of the estate tax return.

Life Insurance Planning Pointers:
To avoid QDOT limitations, consider the benefits of life insurance outside of the QDOT. Under this structure, the non-citizen spouse or a trust can apply for insurance as owner and beneficiary on the life of the citizen spouse. Since the non-citizen spouse (or Trust) owns the policy, he/she can maintain full control of the policy’s death benefit outside of the extreme restrictions required by the QDOT.

*Check with your Advanced Markets Director for a helpful chart on the different rule.
 

AIG American General Life
- Announcing AIG Income Advantage VUL
- Elite Universal Life and Platinum Investor Product Enhancements Now Available

AXA Equitable
- Minimum Face Amount Increase for ROPTerm

Lincoln Benefit Life
- Ultra Index: How Its Guaranteed Loan Structure Helps Customers Maintain Strong Downside Market Protection

MetLife Investors
- Introducing Electronic Drafting of Initial Premium
Advance Payments for all Life Products
- The Importance of Life Insurance Reviews

 

Upcoming Calls and Events

Teleconference: Principal: Increase Your Bottom Line
Date: November 15, 2007 - 3:00 pm EST
Register Now or call 888.241.1254

Teleconference: AXA Presents Trust Funding Strategies
Date: November 28, 2007 - 3:00 pm EST
Register Now or call 888.241.1254

 

carrier incentives

American National
- ANICO’s 2008 Marketing Conference in Hawaii

 

questions?

Call The Potomac Group at
800.722.1600, ext. 6446 for more information.
 

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