In the field of estate planning the acronym ILIT stands for an irrevocable life insurance trust. This type of trust can be useful for those who are exposed to estate taxes. There is a federal estate tax that is applicable in all 50 states, and some states have state-level estate taxes. We have offices in Kentucky and North Carolina. These states do not impose state-level estate taxes. Federal Estate Tax Parameters Before we examine the value of an ILIT, we should provide some background … [Read more...] about What Is an ILIT?
Most people want to do as much as possible for their loved ones throughout their lives and at the time of their passing. So, you may think that accumulating resources for the well-being of your loved ones is a good deed that should go unpunished. While it is enriching to leave behind a robust legacy, when your assets reach a certain level you do have to concern yourself with the federal estate tax. This death levy carries a 35% rate at the present time, and if that was not enough it is going up … [Read more...] about Use Of Life Insurance Trust Can Be Wise
Contrary to popular belief, estate planning is not something that is confined to senior citizens. As unfortunate as it may be, people of all ages pass away every single day leaving loved ones behind. Estate planning can be accurately described as a core responsibility of adulthood. This is one reason why many employers immediately offer new employees life insurance policies (a part of estate planning), with the employer usually providing a base level of coverage at no cost to the … [Read more...] about Estate Planning: A Basic Responsibility Of Adulthood
Sometimes parents of young children are very motivated to do their estate planning because they want to protect their children and make sure that they’re always provided for. And, sometimes, parents of young children are overwhelmed by life and have trouble getting around to doing their estate planning. No matter your life situation, there are 4 important estate planning actions parents of young children need to take. Name guardians in your wills Meet with a qualified estate planning … [Read more...] about 4 Important Estate Planning Actions Parents of Young Children Need to Take Now
Sometimes beneficiary designations get overlooked during the estate planning process or as life unfolds somewhat chaotically. Just like the rest of estate planning, beneficiary designations are not a “once and done.” It is imperative that you ensure your beneficiary designations are in line with your current intent and estate planning documents. Be sure to review and update beneficiary designations, as needed, every three to five years or upon the occurrence of a significant life event. … [Read more...] about Update Beneficiary Designations NOW!
No one wants to lose half of the value of their life insurance to the federal estate tax. But that is exactly what can happen if you don’t plan carefully. You’re in luck because the federal estate tax is often a voluntary tax. You volunteer to pay by not planning. We suggest that you plan and avoid the federal estate tax. Unified Credit – Each individual can pass a certain amount during his lifetime or at death without paying federal estate tax. This amount is called the unified … [Read more...] about Protecting Life Insurance from Federal Estate Tax
Families and businesses use life insurance for a multitude of reasons. It is often an essential part of an estate plan. When investing in life insurance, you always have to make the permanent life insurance versus term life insurance decision. There are many cases in which term insurance is appropriate. Why? Read on. Why Life Insurance? Life insurance is used for several purposes: Create an estate Replace income Equalize an estate Pay taxes Fund a buy/sell agreement What’s the … [Read more...] about Life Insurance Considerations: Why Term Insurance?