When it comes to estate planning, accounting firm BDO Seidman found that most middle-market company owners relied on life insurance to pay for estate taxes that currently run as high as 55%. Too bad. Insurance is costly, and sometimes unnecessary when tax-advantaged strategies such as trusts (see "A Guide to Trusts," No. 08920903, August 1992) can be used instead.* * *
Which of these methods do you use to provide for the payment of estate taxes?
59% Life Insurance
12% Corporate Redemption
6% Proceeds from Sale of Business
Source: "Pulse of the Middle Market," a BDO Seidman survey of 2,201 companies; 88% with annual revenues of less than $50 million, New York City, 1991