In the simplest of terms, a trust is an arrangement where property is managed by one person for the benefit of another. If you have accumulated
significant wealth over the years, a good estate plan defines how you will build, preserve, and allocate that wealth.
With a life insurance trust, the trust is both the owner and the beneficiary of one or more life insurance policies. Upon the death of the insured, the
death benefit proceeds are available to indirectly provide cash needed to pay final expenses and estate taxes.
Survivorship life insurance may help your attain all three of these goals. The key aspect that makes a life insurance trust desirable is that when
properly executed, the death benefit proceeds are not included in the taxable estate. A survivorship life insurance policy is an extremely efficient
way to plan for estate taxes.
Points to consider about a Life Insurance Trust
As the beneficiary of the life insurance policy, the trust receives death benefit proceeds free of federal income taxes and estate taxes. The death
proceeds may be used to indirectly provide the cash needed to pay estate taxes and other obligations. To discuss how RCC can help you, contact