That s always been the case. However, naming a charity, under the old rules, meant that Required Minimum Distributions during the plan participant s lifetime would be far larger than if a designated beneficiary had been named. We can expect more naming of charities in IRAs and qualified plans. Under some proposals for Estate Tax Repeal, the current step up in basis rules would be eliminated for estate assets exceeding a certain amount. Highly appreciated assets in excess of that amount would carry out to heirs a potentially huge Capital Gains liability.
Life insurance can provide the cash to pay that liability.
Stock market volatility won t be repealed. Life insurance offers a way for estate owners to guarantee a future sum, regardless of market conditions. Sometimes we forget the glaringly obvious. If the Estate Tax is repealed, then proceeds of life insurance policies owned by the insured won t be subject to that tax. If the Estate Tax is repealed, ALL the Income Tax advantages of life insurance remain unchanged, and the death benefit will be free of BOTH Income AND Estate Tax.