Irrevocable Life Insurance Trusts: A Valuable Tool You May Not Know
Wednesday, June 25, 2014You 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” »