Meyer Bendavid, 5757 Owensmouth Ave. # 11, Woodland Hills, CA 91367

 (818) 884-9923 cell (818) 261-2470   meyer5757@aol.com
  Problem Solving
-- California Insurance License # 0B89248 


 To review mentoring services  Press >>> Mentoring
To learn when to buy or sell stock or mutual funds- Press >>> StockTracker 

A new concept for finding a job- How to create a resume Press >>> Resume



Why buy insurance? -You die - How do you pay your bills?- what happens to your family?
The income produced for the survival of the family is now gone. Your family's lifestyle has changed for the worse


Do You Have a Will?

  • When was your will drafted?
  • When was your will last reviewed?
  • Have you married or divorced, or borne or adopted children since your will was drawn?
  • Does your will provide for the disposition of your assets to those you wish to receive them if both you
       and your spouse should die simultaneously or within a short time of each other?
  • Is your spouse your executor? If so, is your spouse well versed in the responsibilities of an estate executor?
  • Has your income changed substantially since your will was drawn?
  • Have you moved to a bigger home or a more prestigious neighborhood in the past two or three years?
  • Have you made any specific bequests? If so, have you arranged them to assure that they will not
       so severely reduce your estate that your family will be unable to live as they have become accustomed?
  • Have you moved here from out-of-state since your will was drawn?
  • Is your will in the hands of your attorney or executor, rather than at home or in a safe deposit box?
  • Do you own property in another state? If so, has your will been reviewed to see that
       it is valid under the state’s laws?
  • Does your spouse have a will that is coordinated with yours in the event of simultaneous death?
  • Have you estimated what your family will have to live on after your federal estate taxes, state death taxes
       and estate expenses have been paid? Is this sufficient? Would you feel comfortable if you had only
       this amount to live on and raise a family?
  • Have you discussed the use of certain trusts to manage your estate’s assets after your death
       and/or to reduce your probable tax liability?
  • Have you named guardians for your children? Did you know that the court will if you don’t?

The following is why you need my service:

The following tables and information displays the current information about the Federal Estate Tax
which is evaluated and calculated of - everything you currently own and everything due you -minus exclusions.

This includes homes, apartments, businesses, cars, boats, airplanes, rental moneys, furniture, jewelry, paintings
Property owned outright, such as real estate, personal property,
bonds, stocks, business interests, bank accounts, life insurance, etc., is includable in the gross estate

Your attorney and accountant will establish your current estate taxes due-- minus all the adjustments.
so that you know what your Current Federal Estate Tax would be-

I recalculate all the estate tax numbers to reflect -- what your Future Federal Estate Tax would look like
for a male to age 84 and a female to age 87

then calculate the life insurance death benefit
using special trusts - to accumulate the necessary money to pay off the Future Federal Estate Tax  --
and to provide extra money for the surviving spouse - paying old bills and funeral expenses.

It is necessary to establish a needs analysis that will be used to calculate

Cost of final illness or injury - Funeral expenses
- Pay estate tax - Pay mortgage and debts -
Provide continuing family income - Funding children's education -
Providing retirement income for a spouse - Provide an emergency fund - and Building an estate value.

You use the Federal Estate Tax Base provided by your accountant and attorney
(gross estate minus deductions plus adjusted taxable gifts)
and look up the tax on the following table.


Federal Estate Tax 2013

Amount Subject to Tax

Tentative Tax

Over $0 but not over $10,000

18% of such amount

Over $10,000 but not over $20,000

$1,800 plus 20% of the excess over $10,000

Over $20,000 but not over $40,000

$3,800 plus 22% of the excess over $20,000

Over $40,000 but not over $60,000

$8,200 plus 24% of the excess over $40,000

Over $60,000 but not over $80,000

$13,000 plus 26% of the excess over $60,000

Over $80,000 but not over $100,000

$18,200 plus 28% of the excess over $80,000

Over $100,000 but not over $150,000

$23,800 plus 30% of the excess over $100,000

Over $150,000 but not over $250,000

$38,800 plus 32% of the excess over $150,000

Over $250,000 but not over $500,000

$70,800 plus 34% of the excess over $250,000

Over $500,000 but not over $750,000

$155,800 plus 37% of the excess over $500,000

Over $750,000 but not over $1,000,000

$248,300 plus 39% of the excess over $750,000

Over $1,000,000

$345,800 plus 40% of the excess over $1,000,000


Exempt Amount



In general, if you have an estate that is large enough to pay estate tax
(see the Exempt Amount in the table), you will be looking up your tax
on the last line of the table (i.e., for estates over $500,000,
the tentative tax is $155,800 plus 37% on the excess over $500,000).




Tyrell died in 2013, leaving a gross estate valued at $8,250,000.
He had funeral and mortgage expenses totaling $800,000.

After subtracting these expenses, his adjusted gross estate totaled
$7,450,000 ($8,250,000 – $800,000).

Tyrell also had a $200,000 taxable gift that needs to be added back
to the taxable estate to arrive at a taxable base of $7,650,000.

Based on the Estate and Gift Tax Rate Schedule (2013), the tax due equals
$345,000 for the first $1,000,000 and 40% of the excess
of $6,650,000, which equals $2,660,000.

The total estate tax due equals $345,800 plus $2,660,000 for
a total Federal Estate Tax due of $3,005,800.

Remember to subtract the credit amount of $2,045,800, which represents
the $5,250,000 estate exemption amount.
After taking the tax due of $3,005,800 and subtracting
the estate tax credit of $2,045,800,

we arrive at a Federal Estate Tax due of $960,000.

This is a very basic example for the purpose of grasping the estate tax calculation concept.



Computation of the Federal Estate Tax

The following is the basic formula for determining a decedent’s estate tax due:


Gross estate


 $ ________


Less: Expenses, debts, and losses




(a) Funeral and administrative expenses

($ ________ )



(b) Debts of decedent, mortgage, losses

($ ________ )



Equals: Adjusted gross estate


 $ ________


Less: Total allowable deductions




(a) Charitable deduction

($ ________ )



(b) Marital deduction

($ ________ )



(c) State death taxes paid

($ ________ )



Total allowable deductions


($ ________ )


Equals: Taxable estate


 $ ________


Add: Adjusted taxable gifts (post-1976)


 $ ________


Calculate: Tentative tax base


 $ ________


Calculate: Tentative tax


 $ ________


Less: Tax paid or deemed paid on prior taxable gifts


($ ________ )


Equals: Estate tax before reduction for allowable credits


($ ________ )






(a) Applicable credit amount

($ ________ )



(b) Other credits

($ ________ )



Equals: Estate tax liability


 $ ________


Problem solving

Most of you will have policies that expire. Life insurance should be used to cover your entire life.

Look at the advantages of indexed universal life.


  • Greater time periods
  • Flexible payments from minimum to maximum
  • Cash accumulation
  • Borrow the cash without repaying it
  • Cash is tax free and not reported
  • You can set your time period from about ages 82 to 87.
  • Why pay more than necessary
  • An option is an increasing death benefit that keeps up with inflation
  • Pay maximum for 7 years – stop paying insurance continue forever
  • The biggest option - your insurance is set to expire -- call the insurance company for the price to   continue the policy. They can’t stop you from paying.


Please e-mail  your suggestions, questions, or decisions to meyer5757@aol.com.


    29 Reasons To Own Life insurance

1  To Meet Consumer Preferences - Many consumers want some amount of life insurance in place when they die.

2  To Pay for Final Expenses – Consider $25,000 of final expenses in today’s dollars. Using the rule of 72 and
a modest 3.5% inflation rate, a 35 year old requires $139,000 for final expenses at age 85. Using a greater
rate of inflation and extended mortality, substantially more insurance would be needed to cover final expenses.


3  To Support Children with Special Needs – Supporting children with special needs does not end with their 
college graduation –
it lasts for their lifetime. Life insurance can help meet this need. 

4   To Equalize an Estate – A business owner may want to leave the family business to a child-employee without
“cutting out” other children who are not in the business. Paying life insurance proceeds to a trust can help
equalize the amount each child receives.


5   To Pay Off a Mortgage – Many consumers will not be mortgage-free in retirement. Consider homes purchased
at older ages, homes financed to pay for college, refinanced homes and vacation homes. Life insurance can help
pay off the mortgage for a surviving spouse.


6   To Replace an Estate – Some consumers may want to spend down assets during their lifetime while leaving a substantial
inheritance to their heirs. Life insurance can help replace the assets spent.

7   To Replace the Value of a Home in a Reverse Mortgage– Insureds may want to tap into the equity in their home
via a reverse
mortgage without eroding their family’s inheritance. Independent from the mortgage, clients
may seek a life insurance policy to help
replace the assets spent.


8   To Provide Cost Recovery for a Dependent Parent or In-Law –The cost of supporting dependent parents or
in-laws may be substantial. Owning adequate life insurance on their lives may recover these costs.


9   To Provide Living Benefits for a Dependent Parent or In-Law – Many permanent life insurance products
provide living benefits and long term care benefits.  

10  To Maximize a Pension
– A retiree may elect to take the highest (life) payout option on his/her pension,
while still wanting to protect the surviving spouse. Life insurance can help meet this need.


11  To Replace Social Security at Death – Social Security benefits do not pass on to the decedent’s surviving
children. Life insurance can help ease this potential financial loss.


12  To Supplement Retirement – The cash value of a life insurance policy can make an excellent retirement supplement.


13  To Provide Tax Treatment Diversification – Under current tax regulations, life insurance cash values grow
tax-deferred and offer tax-favorable access to that cash value by allowing withdrawals up to the cost basis
and borrowing thereafter.


14   To Provide Creditor Protection – Some state statutes protect policy cash values from the claims of creditors.


15   To Provide an Asset That is Not Subject to the Alternative Minimum Tax (AMT) – AMT affects many
middle class folks; it is no longer a problem just for the wealthy. Under current tax law, policy cash values
and death benefits of individual policies are not subject to the AMT.


16  To Own an Asset That Is Not a Factor in Determining Eligibility for Financial Aid – As a general rule, policy
cash value is not a factor used in determining eligibility for financial aid for college.


17  To Provide Insurance to Unhealthy Individuals Owning Soon To Expire Convertible Term – Uninsurable
or rated clients may own level term policies that are about to expire. Converting these policies before
expiration can guarantee* continuation of coverage (if the policy provides for conversion rights).


18  To Mitigate Taxation of Social Security Benefits – Currently, income from policy loans does not impact
the income calculation for taxing Social Security benefits.


19   To Replace Income with Respect to a Decedent on Qualified Assets – Tax deferred accounts, such as
qualified retirement plans, are subject to income taxes at the death of the owner (except for transfers to spouses).
Life insurance can help replace these taxes.


20   To Pay Estate Taxes – Clients with larger estates may be subject to substantial estate taxes at death.
Life insurance owned by an ILIT can escape estate taxation and provide the liquidity needed for the estate.


21   To Provide Liquidity to Pay Estate Taxes –Estates of wealthier clients may contain illiquid assets such as
real estate or a family business. Life insurance (owned by an irrevocable life insurance trust, or ILIT) can
provide the necessary liquidity to help pay estate taxes.



22   To Leverage a Gift – Annual exclusion or lifetime gifts can be leveraged up many times by using them
to purchase a life insurance policy outside of the gross estate.


23   To Hold By-Pass Trust Assets –If the beneficiary of a by-pass trust does not need (all) the trust principal,
assets can be used to purchase life insurance. The asset is leveraged up many times, income taxes on the growth
of the assets are minimized and a federal income tax-free death benefit is created, based on current tax laws.


24   To Replace a Trust that Terminates at the Death of a Beneficiary – Certain trusts terminate at the death
of the beneficiary. Using trust assets to purchase life insurance during the beneficiary’s lifetime means he/she
can continue his/her legacy to his/her heirs.


25   To Leverage a Charitable Gift –A charity can use relatively small annual gifts and leverage them into a
potentially relatively large death benefit payable at the death of the donor through the purchase of life insurance.


26  To Replace a Charitable Gift – Clients may wish to leave certain assets to charity at death.
Life insurance provides for the replacement of donated assets that heirs would have otherwise inherited –
such as taxable retirement accounts.

27  To Provide for Business Continuation – Permanent life insurance is typically a better solution than term
for funding a business continuation plan. It insures that the policy will be in force regardless of how long the
business owner stays active in the business. Policy cash values may be available to fund a lifetime buyout
or supplement an owner’s retirement. Under current tax law, funding a business continuation plan is a
valid business purpose for accumulation of assets and is not subject to the excess accumulations tax.
A Waiver of Premium Rider would provide additional benefits to help complete the package.


28   To Provide for Executive Benefits – If structured properly, policy cash values can be used to fund
deferred compensation retirement benefits paid to executives. Death benefits can be used as cost
recovery mechanisms for the company.


29   To Provide for Repurchase of ESOP Shares – Many Employee Stock Ownership Plans (ESOPs)
require the company to re-purchase the shares upon the death of an owner/employee. Life insurance
can help provide the funding for this obligation.