Woman steals $90K from client, tries to sell home: officials

A 76-year-old insurance <a href=agent is accused of stealing more than $90,000 from her client, who is an older adult, California officials said. She was arrested on Jan. 12, 2023.” title=”A 76-year-old insurance agent is accused of stealing more than $90,000 from her client, who is an older adult, California officials said. She was arrested on Jan. 12, 2023.” loading=”lazy”/

A 76-year-old insurance agent is accused of stealing more than $90,000 from her client, who is an older adult, California officials said. She was arrested on Jan. 12, 2023.

A life insurance agent moved into her client’s home, tried to sell it and stole more than $90,000, California officials said.

Sally Nava Kanarek, 76, was arrested on Thursday, Jan. 12, and faces multiple charges, including elder financial abuse, grand theft of an elder and forgery, the California Department of Insurance said in a news release.

Kanarek, from Huntington Beach, worked as a life insurance agent from 2018 until 2021, the release says.

In 2020, she moved into a client’s home as their “roommate” and took over their finances after learning about their medical condition, the release says. She also posed as her client’s “health care manager,” officials said.

Kanarek took $90,995 from her client, who was incapable of giving consent, the release says. Some checks she received from her client appeared to be forged, officials said.

Additionally, she sold the victim two annuities worth more than $580,000.

“The sold annuities were against the victim’s financial interest,” the release says, and they gave the agent $7,800 in commission.

Then Kanarek tried to withdraw over $110,000 from the victim’s IRA and sell their home, according to the release.

Her insurance license was revoked on Dec. 29, 2022.

The Newport Beach Police Department arrested Kanarek, and she was booked into the Orange County Jail. She’s

Read the rest Continue Reading

IRC Section 6166 and Life Insurance

The scene is familiar one. The client, seated at the head of his large conference room table, is the sole owner of a successful business that comprises a significant portion of his taxable estate. Joining him around the table are his estate planning and corporate attorneys, audit and tax partners from his accounting firm and his life insurance agent. Also sitting in, and leaning very close to the conversation, are two senior members of the client’s executive team.

A Very Taxing Situation

The subject of the meeting is how to deal with, meaning pay, the very considerable estate tax that will be due when the client dies. You see, the client is a widower, so there’s no marital deduction to defer the tax to the death of a surviving spouse.

The client established an irrevocable life insurance trust (ILIT) some years ago. The ILIT owns a policy that’s nowhere near sufficient to cover the estate tax. The beneficiaries of the ILIT were originally his wife and two, now usually adult, children, neither of whom are involved in the business. If you listen carefully to the banter among the professionals at the table, you’d hear them describing the ILIT as a grantor trust for income tax purposes. You’d also hear them point out that the ILIT has the usual provision about providing liquidity to the estate by way of loans or purchases of assets.

Discussions with this client about estate tax planning have never been fruitful. He has steadfastly refused to do any planning that would result in his having anything less than complete control of the enterprise. Even the acronyms for the various planning strategies are now crying out from the slide decks, “Hey, enough. He’s just not into us! Never was and never will

Read the rest Continue Reading

I Canceled My Life Insurance Policy. Here’s Why

A person sitting on their couch under a blanket and reading a book.

Image source: Getty Images

Not everyone needs life insurance at all points in their life.

Key points

  • Life insurance is certainly necessary for those who have dependents.
  • If you have no one relying on your income, you might not need it.
  • If your life circumstances change (say if you get married, divorced, or buy a home you want to pass on to someone else free and clear) it’s a good idea to rethink your insurance needs.

A life insurance policy can give you peace of mind that the people who depend on your income (such as a spouse, children, or even a business partner) will not be left high and dry if you pass away and that income disappears. But what if you don’t have anyone depending on your income? Do you still need a life insurance policy? Perhaps not.

A little background

I got my first life insurance policy in 2015, based on a discussion with the insurance agent who handled my auto insurance and renters insurance. I was in the process of combining policies with my partner at the time, who became my spouse later that year, and the insurance agent suggested adding a term life policy, noting that my future spouse depended on my income. Since I was fairly young and in good health, the policy‘s monthly cost wasn’t a lot, and it seemed like a good move to get it.

Fast forward a few years

I ended up getting divorced in 2019, and honestly, the life insurance policy didn’t really cross my mind at the time. Note: If you go through a major life change like a divorce, try not to forget about things like life insurance. You will want to review your coverage and change the beneficiary named in your policy, if it’s your

Read the rest Continue Reading

Life Insurance Scams: How to Protect Yourself

Buying life insurance coverage is all about protecting those you care about after you’re gone. What’s sad is that there are those who perpetrate life insurance scams, all in hopes of getting their hands on money that does not belong to them. Even worse, the most sophisticated life insurance fraud is often carried out by insurance agents. Here, we lay out some of the most common life insurance scams and discuss how to avoid becoming a victim.

What are the most common types of life insurance scams?

Scams are limited only by the imagination of the crook — and they are crooks. While not all scammers are insurance agents, insurance agent fraud is real. After all, these people have access to both your personal information and your money. The first step in protecting yourself is recognizing the most common types of life insurance scams.

Identity theft

When your identity is stolen, it can upend your life. One of the most common ways to attempt identity theft is to contact you by email, phone, or letter to request personal information. For example, a scammer may tell you all about a life insurance policy that sounds perfect for you. To “help you get started,” the scammer then asks for personal information, including your Social Security number. Once they have your name, Social Security number, and address, they’re well on their way to using your identity for their own illegal purposes or even selling your identity to another thief.

The fact that most scammers have a great deal of experience makes them dangerously smooth. It’s easy to believe what they’re saying. When someone posing as an agent asks for your banking information, credit card number, or mother’s maiden name, you may be tempted to give it to them.

Policy switching

Scammers get away

Read the rest Continue Reading