Life Insurance Legacy planning

Life insurance by design is a wealth transfer vehicle, as its purpose is to provide for the needs of your beneficiaries upon your passing. Death Benefit can pay debts, created college fund and pay large chunk to surviving spouse and children. It is flexible in how distribution is arranged. 

In special cases, like the need of support for disabled child, insurance proceeds can be transferred into the trust fund or annuity, paying monthly increments instead of large lump sum. Death benefit can be assigned to charity organization.

Liquidity and Life Insurance Estate Planning: Life insurance proceeds can be used to pay taxes, probate fees and other estate costs so that estate assets, such as residential property or business don’t have to be sold in order to pay estate tax on them.

Taxation and Life Insurance Legacy Planning: The main advantage of using Life Insurance instead or in complex with other investment vehicles is Tax Free distribution. The entire value of your policy will go to beneficiaries, outside the estate tax. The only situation in which tax may be due on life insurance proceeds is when you remain exposed to the estate tax. However, that problem can be solved by properly using a life insurance trust. Contact our team for details.