Description :

When owned by a properly structured irrevocable trust the death beneit from a life insurance policy can provide liquidity to ofset federal or state wealth transfer taxes and it can prevent a forced sale by purchasing assets from your estate or by lending money to the estate. Alternatively if you plan for a business partner to run the company your business partner can use life insurance death benefit proceeds to purchase your share from your estate or spouse this structure means your estate or spouse can receive cash from the sale and helps ensure that your business will survive preparing for the future. If you expect to owe estate taxes at your death life insurance as part of a trust can be a good way to help reduce your estates overall tax burden as well as help cover any estate taxes that need to be paid all while passing along money to your heirs. The proceeds of a life insurance policy can do much more than provide a large sum to your beneficiaries here is just a partial list of the benefits provided by making life insurance a part of your estate planning strategy o it provides immediate cash at death to pay funeral expenses debts and final income taxes of the insured. Life insurance products can also figure into executive benefits indeed corporate owned life insurance is integral to supplemental executive retirement plans serps the varieties of which include bonus plans and non qualified deferred compensation arrangements 3 lastly a life insurance policy death benefit transfers quickly to a beneficiary