A life insurance plan is a good thing to have in place when you are planning for your estate. When you die, this plan can be included in the value of your estate. It can be combined with the cost of everything else you own to add up to an estimated total. Then it may be distributed as you have previously outlined in a will. With an irrevocable life insurance trust, it can own a life insurance policy on your life instead of you. This means that upon your death, the trust will receive the money and the trustee that manages it according to the terms that are stated in the trust. This trust is designed so that the proceeds of your life insurance policy are not a part of your estate. It will also not be added up in the value of your estate when it comes to paying estate taxes. This trust can also protect you from creditors. When these trusts are created, they must comply with special rules to remain valid through their duration.
What else is included in my estate?
When you plan for your estate administration, you should remember all the aspects of your estate. Your will is an important part of the planning process. In this document, you can outline your wishes. Your estate can consist of all your properties and assets. This can also include any debts that you have accrued or any taxes that you still must pay. Upon your death, an executor will be in charge of taking care of these issues for you. They will also be in charge of gathering assets that are intended to be distributed. When you name beneficiaries in your will, you will be giving them a part of your estate. This can show that you cherished your memories with them and care about them as a family member or close friend. It can also divide your estate into many different parts. You may decide to give a property to your child or a sentimental item to your close friend. This can be a nice reminder of the memories you shared with that individual. By distributing these items to beneficiaries, it may make it easier on your family. They will not have to guess what parts of your estate should be distributed and who they should be given to. This can give them a peace of mind after your death and allow them to grieve without having to worry about other aspects.
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.