As soon as your estate reaches this amount, you may want to review the situation with your insurance representative to evaluate the tax consequences. There are many insurance companies, agents, and variations among term and permanent policies. Shop around for the best policy at the least cost for your situation. Many of these questions can be answered by a qualified and experienced insurance agent. Annuities An annuity is another useful tool to help plan your estate if the annuity is properly designed and implemented.
Costs vary, depending on the type of annuity and on the age of the person making the purchase.
An owner exchanges property or cash for an annuity income based on the fair market value of the property transferred and his projected life expectancy, as calculated according to actuary tables. A commercial annuity is typically issued by an insurance company for cash. An annuitant can choose to have the annuity continue for his survivors. A private annuity usually ceases upon death. A private annuity can be used if parents want to transfer a farm to a child in exchange for a guaranteed income for life.