Friday, May 05, 2006
Using a life-insurance trust
Life insurance is an important ingredient in making sure that your family is taken care of after you die. While income tax does not apply to a life-insurance payout, the dreaded estate tax does.
If you have a substantial policy that could push the value of your estate above the tax threshold (currently $2 million) you can create an irrevocable life-insurance trust, a legal entity that will own the policy while you're alive and pay the proceeds to the beneficiaries you've designated after you die. A trust works with both cash-value (whole, universal) and term policies.
Using a life-insurance trust
Source: Star-Telegram
If you have a substantial policy that could push the value of your estate above the tax threshold (currently $2 million) you can create an irrevocable life-insurance trust, a legal entity that will own the policy while you're alive and pay the proceeds to the beneficiaries you've designated after you die. A trust works with both cash-value (whole, universal) and term policies.
Using a life-insurance trust
Source: Star-Telegram
Permalink posted by armandn @ 6:36 AM 
 |
 |  |
  |
