William Penn Life, 1993 (28. évfolyam, 1-11. szám)
1993-07-01 / 7. szám
Page 2, William Penn Life, July 1993 William Penn LIFE Official Publication of the William Penn Association Published Monthly Office of Publication: 709 Brighton Road Pittsburgh, PA 15233 Phone: 412/231-2979 Third Class U.S. Postage Paid Pittsburgh, PA Permit No. 2724 E. E. Vargo Editor-in-chief George S. Charles, Jr. Frances A. Furedy Associate Editors John E. Lovász Managing Editor NATIONAL OFFICERS E. E. Vargo National President George S. Charles, Jr. National V.P. /Secretary Frances A. Furedy National V.P./Treasurer Robert A. Kapinus Assistant Treasurer BOARD OF DIRECTORS Joseph P. Arvay Chairman Michael J. Hrabar Vice Chairman Roger G. Nagy Vice Chairman Anthony C. Beke Charles S. Fabian Louis A. Fodor Elmer A. Furedy Barbara A. House Michael R. Kara Michael F. Tomcsak Elmer W. Toth Frank J. Wukovits, Jr. Frank J. Radvany Secretary of the Board AUDITING COMMITTEE Charles J. Furedy Robert A. Ivancso Co-Chairmen Margaret H. Boso Secretary Dennis A. Chobody Joseph Hamari Ernest J. Mozer, Sr. CONSULTANTS Bruce & Bruce Company Actuary Horovitz, Rudoy & Roteman C.P.A. Rothman Gordon Foreman &l Groudine, P.C. General Counsel Dr. Julius Kesseru Medical Director Unsolicited articles, letters, manuscripts, pictures and other material submitted to the WILLIAM PENN LIFE are forwarded at the owner's risk, and the WILLIAM PENN LIFE expressly denies any responsibility for their safekeeping or return. The WILLIAM PENN LIFE reserves the right to edit, revise or reject any article submitted for publication. Postmaster: If undelivered, please send form 3579 to: William Penn Association 709 Brighton Road Pittsburgh, PA 15233 Deadline nears for Language Camp PITTSBURGH — Any William Penn life benefit member age 18 or older who is interested in learning Hungarian or improving his or her Hungarian language skills is invited to attend the fourth annual Hungarian Language Camp to be held Aug. 8 to 14 at Penn Scenic View in Rockwood, Pa. The cost for the week—including instruction, learning materials, six-nights lodging and all meals—is only $200 per person. The deadline for reservations is July 2, 1993. Reservations will be taken on a first-come/first-served basis. Those whose reservations are received after the class has been filled will have the option of being placed on a waiting list in the order in which their reservations were received. A limited number of double rooms will be available on a firstcome/ first served basis. All other students will be housed in dormitory style accommodations. To reserve your seat in our language camp, complete the form found below and mail it to the Home Office. Please include a $50 per person deposit with your form. The balance of the fee will be due on July 2, 1993. For more information about the camp, call the Home Office toll-free at 1-800-848-7366. Arvay named to Middlesex County Board NEW BRUNSWICK, NJ — Joseph P. Arvay, chairman of the William Penn Association Board of Directors, was recently appointed to the Board of Trustees of the Middlesex County (N.J.) Certified Local Development Company. Chairman Arvay, a resident of New Brunswick, andjohn J. Cassese of Colonia, N.J., were appointed to three-year terms by the county’s Board of Chosen Freeholders. Their terms commenced May 6 and will terminate on May 5, 1996. NOTICE Effective July 1, 1993 the interest rate on Flexible Premium and Single Premium Deferred Annuity Contracts will be a competitive 6.25% The Best Bargain On Hungarian Language Instruction You’ll Find Anywhere! WPA Hungarian Language Camp August 8-14, 1993 Penn Scenic View, Rockwood, PA 25 Hours of Instruction in the Hungarian Language Indoor Lodging & Three Meals a Day Plus, All Instructional Materials All For ONLY *200.00! Open to all William Penn life benefit members age 18 or older. YES, I want to learn Hungarian. Please register me for this course. Name:___________________________________________________Phone: ( )_______________________________ Address:__________________________________________________________________________________________________ Certificate No.:_____________________________________Branch:__________________________________ Level of Instruction Desired: □ Beginner □ Intermediate Send this form, along with your deposit of $50 per person, to: Language Camp, William Penn Association, 709 Brighton Road, Pittsburgh, PA 15233 Deadline for reservations - July 2, 1993 Estate Planning and Life Insurance By Emil W. Herman, Esq., General Counsel Life insurance readily meets the estate planning needs of people in a variety of family, business and professional situations. It can supply the cash required to satisfy the debts and taxes arising from the death of the insured, thus protecting the insured’s other assets against forced sale and allowing those assets to remain unreduced and fully available to the insured’s survivors. Life insurance may offer the only means by which the insured can accomplish a particular estate planning goal as, for example, the education of a child, or the legacy to a grandchild. In the more sophisticated estate plans, life insurance provides an ideal funding mechanism for significant charitable gifts or irrevocable future interest trusts intended to benefit as many future generations as the law permits. The estate planning lawyer tries to achieve the dispositive goals of the estate planning client while saving death taxes. How does one plan for life insurance? We begin with two basic notions. First, under the Internal Revenue Code, each of us can transfer $600,000 in value to our chosen beneficiaries by a combination of lifetime and at death transfers free of Federal estate and gift tax. This amount is called the "unified credit.” Second, for Federal estate tax purposes, life insurance is taxed to the owner of the policy. Thus, life insurance will only be taxed in the estate of the insured, if the insured is the owner of or, as the statute says, possesses "incidents of ownership” in the policy. For many insureds, life insurance may be their single most valuable estate asset, more valuable than the net equity in their homes and often more valuable than the accumulated benefit in their pension plans. As a result, estate planning lawyers consider carefully not only the choice of beneficiary but also the choice of owner of the policy. We are influenced in our recommendations by the relationship between the combined value of all assets owned by the insured and his or her spouse, including the insurance death benefit, (the "Combined Estate”) and the $600,000 unified credit. If the Combined Estate is less than $600,000, we may recommend that the insured remain as the owner of the policy and name his or her spouse as beneficiary. If the Combined Estate exceeds $600,000, we might recommend that the insured transfer ownership of the policy to his or her spouse or that the insured remain the owner but name a trustee as beneficiary to hold a portion of the insurance proceeds for the benefit of the spouse but in a manner which would not give his or her such power over those proceeds as to cause them to be a part of the surviving spouse’s estate. If the insurance death benefit is particularly large, we might recommend that the insured transfer ownership of the policy to the trustee of an irrevocable life insurance trust and also name the trustee as the beneficiary of the policy. If the trustee is the owner (and if the insured has survived the transfer by three years), the insurance is not included in the estate of the insured for Federal estate tax purposes nor is it included in the estate of the insured’s surviving spouse. Under current law, if the trustee of the irrevocable insurance trust actually applies for the insurance policy, the proceeds are immediately free of estate tax. In subsequent issues, we will discuss specific estate planning uses of insurance. If there is a use of particular interest to any of you, please advise the editor and he will let us know. Emil W. Herman, Esq., is general counsel to William Penn Association and senior member of the Pittsburgh law firm of Rothman Gordon Foreman & Groudine, P.C.
