Life insurance as part of your estate planning

Apart from the fact that it may serve as a tax shelter for you and your families, life insurance can also be a good framework for the programming assets, and specifically deals with how to distribute your assets after you die, which will greatly benefit your children.
Currently, the federal tax law provides that the first $ 700000 in inheritance exempt from the federal tax. Most members allow similar amount and some have no inheritance tax. Realistically, most people need not worry much about taxes and the reduction of property assets. Moreover, most couples own their property and the property to the public, so that the surviving spouse or the owners do not have to pay inheritance taxes, even if the property is greater than the amount allowed under the law.
But if you are on the estate and is worth more than the law allows, we can ensure that the assets go to your survivors and not the government? This is the point at which life insurance and life insurance come into trusts

To do this type of estate planning, consult an expert who can both advise and implement appropriate vehicles. Briefly, here's how it works:
1. You have created an irrevocable life insurance trust, which contribute annually. Confidence is, essentially, a life insurance policy, which goes from your children or survivors taxfree. You can not withdraw money for any reason (hence the term irrevocable).
2. Your spouse and your children give each regardless of the law that allows the moment, so that the money is taxfree.
3. You will have the amount due to a special organization of your choice, which, by definition, be exempt from inheritance taxes. If you do not have the outstanding amount to a charitable organization, is considered part of your estate and your heirs will have to pay their taxes.
In this case, the IRS took this picture. Using a part of your domain, you can buy a tax-free life insurance policy so that your heirs get the same amount would first of all inheritance tax - the amount equivalent to the estate. Plus, you can devote a large part of your property to a charity rather than the government. The only party that loses is the IRS (and another party wins, the life insurance company, which charges a significant amount of that policy over a period of several years). , But nothing lose your heirs! It is not that the purpose of estate planning?
Do not try to run the complicated process for yourself. A qualified professional can help you sort through the small details and prevent you from making a costly mistake.

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