How do I plan a life insurance policy?

As people plan their estate, they may consider the option of life insurance. It is an important topic to consider in order to protect your assets and the beneficiaries of those assets. Although these topics may be emotional to consider, they are looking out for the future of your loved ones. You will want to ensure you are leaving your family and friends to succeed in life. In order to better plan, contact us for legal guidance. We can make sure your loved ones are taken care of.

What is an irrevocable trust?

An irrevocable trust is an effective tool that can protect the future of one’s assets and beneficiaries. Individuals have used this method to address estate tax issues, divorce planning and special needs trusts. This type of trust can own a life insurance policy on your life instead of you. When you die, the trust receives the money. After the money is received, the trustee manages it according to the terms that you have laid out in the plan.

When this trust is designed, the proceeds of your life insurance policy are not part of the estate and not part of the value of your estate regarding the payment of estate taxes. These trusts also have the ability to protect the assets within it from creditors. However, the life insurance trust must comply with special rules when they are created and throughout their duration to ensure these benefits. Upon death, the full value of an individual’s life insurance policy becomes included in their gross estate, regardless of the beneficiary who is named.

Our firm can help you with all these needs. We will put all our effort into helping to create an irrevocable life insurance trust that you are satisfied with. Throughout the process, we are willing to assist in any way. We can aid you in the decision of choosing a trustee. With our skills, we can better inform you of how to fund the trust and how to operate it in order to maximize its protections and tax advantages. During a difficult planning process like this, we will guide you every step of the way.

Working with an experienced estate planning attorney, such as Jaci Feldman of the Woodland Hills, California, Law Office of Yacoba Ann Feldman, will ensure that you are taken care of when you need it most. Contact The Law Offices of Yacoba Ann Feldman to schedule a consultation today.