Life insurance is a unique asset that can meet several diverse objectives.  It can provide liquidity to pay taxes, replace income after a death, create wealth to build an estate, pay estate settlement costs, pay off a mortgage, or buy out a business interest.  Life insurance proceeds are received income tax free, but if your estate (including insurance) is greater than the applicable exemption amount (unified credit), insurance proceeds will be subject to estate taxes at the current rate of 45%.

You may legally avoid estate taxes on your insurance by having an Irrevocable Life Insurance trust (ILIT) as the owner and beneficiary of your life insurance proceeds.  Additionally, the ILIT may be drafted to provide asset protection to your loved ones.

In addition to Irrevocable Life Insurance Trusts Davis Schilken, PC provides advanced estate planning expertise in the following areas:

• Multi-Generational Planning
  
• Special Needs Trusts
• Pet Trusts
  
• Asset Protection Planning
  
• Tax Planning
  
• Charitable Planning
  
• Retirement Planning
• Intentionally Defective Irrevocable Trusts
• Grantor Retained Annuity Trusts
• Family Limited Partnerships

 For information on how to get started on your estate plan visit our Estate Planning Process page.