When planning one’s estate, the topic of life insurance may be something important to consider. One of the ways a person can protect the future of one’s assets and beneficiaries is through an irrevocable life insurance trust. The irrevocable life insurance trust is very effective and powerful estate planning tool. It is used most often when addressing estate tax issues. Other popular and effective uses include divorce planning and special needs trusts. Careful attention must be paid as to how much insurance to buy and how to situate it in your estate plan. At The Law Offices of Yacoba Ann Feldman, we will go above and beyond just creating an irrevocable life insurance trust for you. We will help you decide who should be the trustee and work with you and your trustee to understand how to fund the trust and operate it to maximize its protection and tax advantages. Our firm has over 35 years of experience guiding clients through these matters. Though these topics may be hard to fathom, our firm is committed to providing the most comfortable environment to discuss the future and the experienced and effective legal services to help you make the best decisions for your family. If you need to speak with an experienced life insurance planning attorney, contact The Law Offices of Yacoba Ann Feldman for a consultation.
Benefits of an Irrevocable Life Insurance Trust
Many people forget to include the value of life insurance policies when they figure the size of their estate because those policies have little to no cash value during their lives. Clients are surprised to learn that on death, the full value of their life insurance policy is included in their gross estate, regardless of who is named as the beneficiary.
An irrevocable life insurance trust, sometimes called an ILIT, can own a life insurance policy on your life instead of you. When you die, the trust receives the money and the trustee manages it according to the terms of the trust. The ILIT is designed so that the proceeds of the life insurance policy are not a part of your estate and are not part of the value of your estate when it comes to paying estate taxes. In addition to protection from estate taxes, these trusts can protect assets from creditors. To enjoy the significant advantages (estate tax and creditor protection), life insurance trusts must comply with special rules when they are created and through their duration.
Contact a Life Insurance Planning Attorney at our firm today
The Law Offices of Yacoba Ann Feldman has significant experience guiding clients through the entire process, from educating them fully about how the trusts work to helping them fund the trust and advising them how to comply with requirements to avoid or reduce gift tax consequences. We are here to help promote the success of your trust and your future planning each step of the way. Contact our firm for a consultation with an experienced Woodland Hills life insurance planning attorney.