For example, a modest estate might require only a simple will, while larger estates concerned with
potential estate tax burdens require a more sophisticated strategy such as a trust.
If you expect to have a
large estate tax burden, you should consider the tax and cash accumulation benefits of a permanent life insurance policy.
Generally speaking, people in their 40s buy a life insurance policy to ensure that these costs are not passed down to their families; or they simply want to
minimize estate tax burdens for their heirs.
Whether this is an
avoidable estate tax burden, a desire to fund an irrevocable life insurance trust to support a special needs child, a wish to create a readily accessible source of liquidity for a business that would support the buyout of a partner when they pass, permanent life insurance can support a number of special needs.
There are steps you may be able to take to help reduce
your estate tax burden.
⦁ You don't expect to die with an estate that would leave your heirs with
an estate tax burden.
So, keeping in mind that single premium life insurance is going to buy more death benefit than any other mode, a liquid estate that can kick in a $ 2 - $ 3 million dollar one time premium could potentially increase the size of the estate significantly without
any estate tax burden.