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Liz writes:

Someone wanted to sell me some insurance to cover the taxes my children would have to pay on their inheritance. Should I start using my annuities income ? I have had them long enough so there are no withdrawal charges. No matter what I decide I still have to PAY the IRS too much <g> At this point in life I have no deductions.

I think we know far too little about your personal situation to offer any meaningful comments on the usefulness of the insurance policy. As to the annuities, will they pass to your kids if you die? If not, then definitely use them. Otherwise you'll get nothing during life and your kids will get nothing after you die. The only winnner there is the insurance company.

I understand your reluctance to pay taxes. Sometimes, though, you simply must. That's especially true when it comes to accounts like IRAs and annuities that Uncle Sam allowed to grow tax-deferred through the years. Either you pay the taxes or your heirs will. There's little you can do to avoid that bill.

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