Edward, Lord Clarendon

Buffett's Betrayal

Simple: if your money is to be taxed at the 50% rate on your death, you can get around that tax by taking the same money and purchasing a life insurance policy payable to your beneficiaries (not your estate, rather to them as individuals). The beneficiaries receive such funds outside the estate and the proceeds are not taxed.

The insurance company gets a premium, of course, but less than that big tax bite.

And the owners of the insurance companies profit at the expense of the public purse. (Of course those profits are taxed, but for the original policy owner's family it's a great deal.)

Clever, these lawyers, aren't we?



On Aug 05 05:38 PM stev53e wrote:

> I'm curious - how did his insurance business benefit?