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Accretive Wealth Blog

Irrevocable Life Insurance Trusts: A Valuable Tool You May Not Know

Wednesday, June 25, 2014

Seat BeltYou buy life insurance policies to provide for your loved ones after you are gone. If your estate is large, however, some of the insurance proceeds may end up going toward estate taxes—and that’s important because the estate tax rate is now 40%.

To shield the payout from your life insurance policy, you can set up an irrevocable life insurance trust (ILIT), which becomes the beneficiary of your life insurance and allows the proceeds to pass to your heirs without being subject to estate tax. Basically, the trust owns the policy. Continue reading “Irrevocable Life Insurance Trusts: A Valuable Tool You May Not Know” »

So What Are CRUTs and What Can They Do for Me?

Wednesday, June 11, 2014

CRUTYou may have heard of a CRUT, which is a rather unpleasant acronym that stands for charitable remainder unitrust. While the acronym may be unattractive, a charitable remainder trust can be a very valuable tool that high-net-worth individuals can use for estate planning, income generation, tax savings, and charitable giving.

Basics

There are a number of charitable remainder trusts and other trusts that allow you to pass on assets to a charitable organization, and the rules for each of them are quite complicated. Continue reading “So What Are CRUTs and What Can They Do for Me?” »