Benjamin Franklin said nothing is certain but death and taxes. Life insurance can take care of both. 

If you or a loved one have accumulated a sizable estate, your family or business could be responsible for paying taxes on the estate. The government leaves little to no time for grieving with the taxes due just 9 months after the individual's death.  If you plan ahead, the estate taxes can be reduced or completely eliminated. Life insurance is a great resource in this situation.

If there is a trust in place, in most cases, you would purchase life insurance with yourself as the insured and the trust as owner and beneficiary. Upon your death, the trustee (the person you designate to manage the trust) would be responsible for allocating the death benefits to pay any debts including income and estate taxes. Your trust beneficiaries will receive any benefits left after debts and taxes are paid.

A few of the many benefits of having a life insurance trust are that it supplies immediate cash to pay expenses including estate taxes after death, it lowers the estate tax amount you would have to pay by removing life insurance from your estate, it also gives you control over how the proceeds will be used. Tax guidelines can change and each individual has different tax needs. Certain rules must also be followed to make sure proceeds do not become part of your estate. It is always best to consult with an attorney who specializes in estate planning before purchasing any life insurance policy for this purpose. 

If you think an irrevocable life insurance trust will benefit you and your family, talk with us or your insurance professional.