When an individual begins the process of estate planning, one of the things that they may want to consider is life insurance. Life insurance can allow an individual to have some security that their family will be taken care of when they pass away. What many people don’t realize is that they have the ability to create an irrevocable life insurance trust. Of course, the individual should discuss this option with their experienced estate planning attorney.
An irrevocable life insurance trust would put the money that the owner of the life insurance policy would typically get into a trust after the individual dies. The trust, like others, would have a trustee who will manage the money that is entered into the irrevocable life insurance trust upon the individual’s death.
Some of the benefits of the irrevocable life insurance trust include that the proceeds are not included as part of the estate and therefore, the trustee will not have to pay estate taxes on that money. Not only will the trust protect the proceeds from estate taxes, it will also protect assets from creditors.
When beginning to plan your estate or taking out a life insurance policy, it may be a good idea to discuss your situation with an attorney who can guide you accordingly.
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.