Did you know that when you pass away, your estate might include the proceeds from your life insurance policies? Depending on the policy’s value, this could invite an estate tax bill. To avoid this, you may want to create an irrevocable life insurance trust, to take ownership of the policy.
Attorney Randy Doane says:
“An irrevocable life insurance trust gives you more control over your insurance policies and the money that is paid from them. If the trust buys the insurance, it will not be included in your estate. So the proceeds, which are not subject to probate or income taxes, will also be free from estate taxes.”
There are additional benefits of a Life Insurance Trust:
– They provide immediate cash to pay estate taxes and other expenses
– The Proceeds avoid probate
– They Can provide income to a spouse
– They Prevent the court from controlling insurance proceeds, and
– They are an Inexpensive way to pay estate taxes
Estate planning is about much more than just giving away property. It is an act of love and kindness, with the ultimate goal of providing for the future financial security of your loved ones. If you are looking to reduce or even eliminate estate taxes so more of your estate can go to your family, the guidance of an experienced estate planning attorney will be invaluable. At Doane & Doane, their Wills and Trusts Attorneys help people minimize tax liability. Their experience gets the best results for their clients.