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WHILE THE TERM estate planning may
sound like it’s only for the wealthy, it’s really
about managing and preserving the assets
you have and passing them on according to
your wishes after your death. What you may
not realize is that life insurance can be a valuable element, especially when combined with
a will or trust. Here are a few of the benefits.
(This is for general information only. Consult
an attorney or tax professional for specific
information on your estate.)
Estate tax funding. Federal estate taxes
can be as high as 50 percent of your gross
estate and must be paid in cash within nine
months of your death. The estate’s personal
assets are often used to cover that tax. Yet,
assets such as an IRA or personal residence
are not easily liquidated on short notice without substantial tax penalties. Proceeds from a
life policy are typically income-tax-free and
often more readily available for your beneficiaries to fund estate taxes.
Family assets preservation. For business
owners, if what you envision after you die is to
keep the business in the family, first consider a
discussion about which of your heirs has the
interest and ability to manage it. In many situ-
ations, families can use insurance benefits to
cash out other heirs if so desired, preserving
family peace while continuing the business.
Estate equalization. Even with an estate
plan, it could take a long time before money is
released and distributed to heirs. Expenses
such as funeral costs, business debt and estate
taxes can place financial burdens on your
family that could mean delving into their own
bank accounts or having to liquidate assets in
the interim. Funds from life insurance could
help pay for these more immediate expenses
by passing along a tax-free death benefit.
Estate plan creation. Life insurance can
create an immediate estate for beneficiaries
when you die. It allows money to be passed
directly to the designated beneficiary, essen-
tially bypassing the complications created by
probate. Moreover, the benefits are distrib-
uted tax-free and remain untouched by
For more on life insurance, visit protec
tive.com/costcolife. Or, call 1-844-740-5433.
2MONTHS LEFT Upgrade to smart-chip card technology by October 2015
Payment processing deadline
How to use life insurance
in estate planning
AS A RESULT of the mortgage practices that led to
the bursting of the housing
bubble in 2008, a series of
regulatory changes were
designed to protect consumers from falling victim
to unfair loans and scams.
Some of those changes,
scheduled to begin
October 1, may lead to longer closing times but will help protect consumers from getting into mortgages they
can’t afford, theoretically cutting the number
of future foreclosures.
The changes include:
; Stricter guidelines for third-party vendors, such as title and escrow services, working with lenders
; Form consolidation for less paperwork
The good news for Costco members is
that the loan consultants assigned to Costco’s
Mortgage Services Program, operated by First
Choice Loan Services, are prepared to walk
you through those changes so you can understand the impact on your personal situation.
For more information, go to costco
finance.com. The Mortgage Services Program
is available in all states in which Costco operates, and now in Puerto Rico, too.
WITH THE NEW EMV payment processing terminals comes a slight learning
curve in using the new devices.
1. Instead of swiping, the customer
inserts the card into the terminal, chip
first, face up.
2. The card must remain in the terminal during the transaction.
3. As prompted, the customer either
signs the receipt or enters his or her PIN
to complete the transaction.
4. When the purchase is complete the
customer removes the card.
Go to costcopaymentprocessing.com
for more information on getting your business ready for the October 1 fraud liability
shift, or call 1-866-451-4008 to talk to a
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