For example, the firm offers an estate protection rider that can help in protecting loved ones
from estate tax obligations that may arise from the payment of the policy's own death benefit.
Our Trusts & Estates attorneys partner with clients to review their ownership and disposition of assets and develop techniques to
minimize estate tax obligations.
My second is that it is covered in an article I recently came across in Investment News, which discusses how these cash value or universal life insurance policies (for the purpose of this blog post, the two are basically the same) were used by estate planning attorneys to fund irrevocable life insurance trusts to help
alleviate estate tax obligations.
This tax free money is then used to pay off any outstanding estate taxes due to the IRS, allowing your estate to be passed onto future generations
without estate tax obligations.
When correctly utilized, the death benefit from your life insurance policy can settle or reduce
your estate tax obligations to the IRS.
To avoid or reduce
your estate tax obligation for future generations, financial planners, bankers, and estate attorneys recommend creating an Irrevocable Life Insurance Trust, also known as an ILIT.