You may be shocked to learn that the money you intend to take care of your kids may instead go to the government.

Many parents are surprised to learn that once they feel they have sufficient assets in place to take care of their kids in the event anything happened to them--including the value of their life insurance--a significant portion of the assets could be lost to the government in the form of estate taxes rather than go to take care of their kids.

Parents also often tell me that they read somewhere or heard from either their financial advisor or life insurance agents proceeds from life insurance policies are not taxable.

That's only partially true.

The proceeds are not subject to income tax. However, they are included in your gross estate at the time of your passing to determine whether or not your estate is subject to estate tax

 However, with careful planning done in advance, you can disinherit the IRS and the Minnesota Department of Revenue and ensure that money is used to take care of your kids. 

Chuck Roulet
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Nationally Recognized Estate Planning Attorney, Author, and Speaker