The Role of Life Insurance in Estate Planning

When most of us think about estate planning the things that come to mind are wills, living trusts, estate taxes, and so forth. However, life insurance can be a very important part of estate planning. One of the main advantages of life insurance is that the proceeds received by the beneficiaries are usually not taxable. Taxes can be avoided except under special circumstances, such as when a beneficiary is not named or the life insurance proceeds are specifically allocated to the estate for a particular purpose.

Another possible benefit of having life insurance in estate planning is, when the estate is structured properly, the beneficiaries can receive insurance proceeds immediately and directly, avoiding probate, and these proceeds are not available to pay off the creditors of the deceased.

Your agent at the Martin Insurance Team, serving Evergreen Park, IL and the surrounding areas, is ready to explain the myriad of ways that life insurance is a valuable tool in estate planning and wealth management.

Life insurance proceeds serve many valuable and desirable functions in estate planning. The proceeds can support beneficiaries, cover the cost of sending heirs to school, be allocated to help pay for estate taxes, and provide funding for sudden death buy/sell agreements in businesses partially owned by the deceased. Life insurance proceeds can also be allocated to charitable efforts and for the funding of private foundations to leave a legacy. There are so many ways life insurance plays an important role in estate planning.

Conclusion

Estate planning is becoming an important consideration for more Americans as many are now becoming older adults. Talk to your attorney in order to understand the legal ramifications of using life insurance in estate planning and wealth management. Consult with your agent at Martin Insurance Team in Evergreen Park, IL to get professional advice about the life insurance that meets your needs and goals.