Using Life Insurance for Estate Planning

how to minimize taxes due on estate transfer with life inusranceHow to Use Life Insurance for Estate Planning

As Ben franklin said, “…in this world there is nothing certain but death and taxes.”  Life insurance can help you when both of those situations occur.  Obviously not the aspect of death, but it can definitely manage the tax aspect of his comment.

As humans, one of our primary failings is that we can’t see into the future and we limit ourselves to only thinking in the near term.  Today your family estate, farm, business or net assets may be well under the current threshold of having to pay estate taxes.  But what happens when (not if) the estate tax limits are changed in the future?  What happens 10-20 years or more from now when your net worth has grown so significantly that your heirs will need to pay estate taxes on their inheritance?  Will your current life insurance policy help them pay the federal tax due?

There is significant life insurance advanced planning strategies that a Retirement Life Solutions Specialist can create to protect your hard earned assets from significant taxation loss.  Universal life insurance policies are usually less expensive than whole life policies and can be created to provide enough life insurance benefit to cover any taxes that might be assessed.  But remember our human nature to be short-sighted?  Make sure you buy enough insurance to insure the growth of your estate into the future. 

The life insurance you buy today will be significantly less expensive than what you will pay for the same amount anytime in the future.  You aren’t getting any younger and you might develop health conditions that may increase the cost or prevent you from being insurable.  Seek out your Tax Free Retirement Planner for advanced strategies. They can create the tax-free life insurance plan and coordinate conversations between your legal representative and your tax planner to ensure your estate plan is maximized for your beneficiaries.  Click here to find an expert planner in your area.


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