An irrevocable life insurance trust is an important part of estate planning. When planning your estate, you should not forget to include a life insurance policy in the value their estate. The value of the life insurance policy that the deceased person has should be included in the total estate plan, even though it doesn’t have any value prior to their death. There are a number of advantages to having an irrevocable life insurance trust. It is basically just a trust that collects the life insurance policy upon the death of the policy holder.
The person who has been appointed as the trustee will manage the money that enters the irrevocable life insurance trust. One of the biggest benefits of having this type of trust is that when your estate is taxed, this significant trust will not be taxed federally along with that. Not only can the trustee avoid these taxes, they will also be able to protect assets from creditors. An irrevocable life insurance trust can allow you to have more than one life insurance policy. These are important because they protect your family after you pass.
It is really important to make sure you have a life insurance policy to provide your loved ones with a sense of financial security after you are no longer with them. If you need help setting up an irrevocable life insurance trust, consult with an experienced wills, trusts, and estate planning and administration attorney today.
If you need the dedicated legal representation for wills, trusts, and estate matters in California, contact the Law Offices of Yacoba Ann Feldman to schedule a consultation.