Estate Planning for Families and Businesses

Frequently a life insurance policy can make the difference in a family's future whether it is to provide the financial security for a young family who has lost a wage earner prematurely, it is replacing wealth tied up in land or otherwise illiquid, it is helping to fund marital agreements or to resolve blended family issues or protect family fortunes.

An Irrevocable Life Insurance Trust lets a client reduce or even eliminate estate taxes, so more of an estate can go to a client’s loved ones. It also provides more control over your insurance policies and the money that is paid from them.

How does an Insurance Trust work?

If the life insurance policy and the benefits are not owned by the client, but are owned by a trust and the insured has no "incidents of ownership" in the policy, then the proceeds of the policy are not included in the estate of the insured at the time of his or her death. If it is not included in the estate of the insured it is not subject to estate tax (45% rate in 2009). The value is protected for the benefit of the client’s beneficiaries - estate tax free.