Estate Planning Through Life Insurance

For affluent individuals death can leave behind a significant estate tax liability or other financial challenges. Some of the problems that life insurance can solve through estate planning are listed below.

Estate Taxes: Life insurance benefits can pay estate taxes so that your heirs will not have to liquidate other assets or take a smaller inheritance.
Equitable Distribution: Estates may contain assets that cannot be equitably divided between heirs, such as a business or property. Life insurance can provide an equitable distribution of the estate, while avoiding the liquidation of fixed assets.
Transfer of Assets: Life insurance can be used to transfer assets from the insured to the beneficiary estate tax and probate free by using cash value building policies, irrevocable living trusts, and gift tax exclusions.

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