Bergenia crassifolia (L.) Fritsch--Pharmacology and phytochemistry by Shikov, Alexander N.; Pozharitskaya, Olga N.; Makarova, Marina N.; Makarov, Valery G.; Wagner, Hilde / Phytomedicine: International Journal of Phytotherapy & Phytopharmacology.
The insurance policy gets to grow tax free, so that when you die there is enough in the policy to pay the estate taxes. For example: You have a $20 million estate. When you die, this estate will pay $11 million in estate taxes, leaving your kids with a net of $9 million.Therefore, to fight this: You spend $5 million on life insurance. The life insurance grows tax-free from $5 million to $20 million.ow your estate is worth $35 million (your $20 million estate, less the $5 million premium, plus the $20 million payout). You now pay $19 million in estate taxes, which means that your kids net $16 million -- a full $7 million ahead of where you would have been if you hadn't bought any life insurance at all!
The Estateâs Tax Year. The estateâs tax year begins on the date on which the deceased person died. You, as executor, can file the estateâs first income tax return (which may well be its last) at any time up to 12 months after the death. The tax period must end on the last day of a month.If you file in any month except December, the estate has whatâs called a fiscal tax year instead of a calendar tax year.he executor of the estate is responsible for filing a Form 1041 for the estate. The return is filed under the name and taxpayer identification number (TIN) of the estate. On it, youâll report estate income, gains, and losses, and will claim deductions for the estate.