Does buying life insurance to pay my Federal Estate Tax really make any sense?
Yes. An event certain to occur and unavoidable is our death. You can “immediately” fund this certainty appropriately for 2%-4% per year of the value of the insurance proceeds. It makes good economic sense for the stability of your estate and business to fully retire your tax liability in a timely manner. Installment payment alternatives over the years can be and are expensive as well as complicated and involved, and certainly not healthy should it place the continuity of a family business at risk.
