Originally Posted by
tunes
I think you are missing the point. The money needs to be able to stay with your family, it’s next to impossible for that if you or your spouse die, most likely your children will be over the age of 25 so the money goes back into the pool
The greater issue is you can’t see my point:
For probably 95%+, the money will be fully used by either the pilot or the spouse. For the 5% that both pilot and spouse die before exhaustion, the account is likely partially used. So really it’s less than 1% that both the pilot and spouse die before using any dollars of the account. And at that point all the rest of your estate flows to heirs, but sadly that $25,000 or so investment is lost... to your fellow coworker.
The argument of the anti-VEBA is the fear of (not you) but your heirs being in that 1%, far exceeds the 99% chance of you enjoying the tax savings (thus ironically helping your estate remain larger for your heirs).
Maybe my % is a few points off either way, but the point remains.