How Can A Life Insurance Trust Aid My Estate Planning?
Is an irrevocable life insurance trust a good idea for managing your estate?
Gainesville elder law attorney discusses how an irrevocable life insurance trust can help people manage their estate better. By having your trust as the owner of your insurance policy, you can save yourself money and time.
An experienced Gainesville elder law attorney can help you
If you have any questions about life insurance trusts, or any other elder law matter — such as estate planning or wills — our attorneys at the Miller Elder Law Firm can help. Call us today.
“One of the strategies that’s very easy to do and easy to set up is something called an ILIT or an irrevocable life insurance trust. What you basically do is you take that $500,000 worth of life insurance, and you create a separate entity that then owns that life insurance policy. The trust itself becomes the owner of the policy. It takes it out of your estate and puts it in its trust estate. Now you only have a million dollars in assets, so when you die, that life insurance trust becomes its own separate entity and is not taxed. You’ve saved yourself quite a substantial amount of taxes by doing that simple thing, just taking the title of that life insurance and putting it into an irrevocable life insurance trust.”