Estate Planning and Life Insurance: Ensuring a Smooth Transfer of Assets
Depending on a person’s lifestyle, health, wealth, age, estate, and more, estate planning differs for each person. Regardless of your situation, it is a must to use life insurance planning strategies. When planning your estate, a simple will may outline how your assets go to your heirs.
Complicated financial situations require more specific instructions. For either scenario, it is essential to have a plan and make your wishes known. Besides having a will, buying life insurance as part of the estate planning process is wise. It helps beneficiaries maintain a quality of life without you.
Life insurance lessens the burden of loved ones at a stressful and sad time. When you die, the proceeds pay for estate taxes and provide your heirs with financial resources. Used in conjunction with a living will or trust, insurance payments ease the legal burden and provide beneficiaries with greater financial certainty.
Benefits for Estate Planning
Beneficiaries are responsible for estate taxes when settling an estate. If there are many assets, life insurance provides immediate cash to pay estate taxes without selling any assets. Beneficiaries receive a tax-free lump sum payment without liquidating the estate.
Advanced planning goes a long way toward a smooth transfer of assets. Life insurance plays an essential role in comprehensive and diversified estate planning. Establishing goals and exploring options available to help work toward those goals is crucial.
Another Estate Planning Strategy
Ensuring a smooth transfer of assets in the manner you desire is the goal. Life insurance provides liquidity for paying expenses and estate charges. Another strategy is using an irrevocable life insurance trust to mitigate estate taxes. It is essential to stay informed about possible changes in estate taxes. Exploring ways to use life insurance is part of comprehensive estate planning. If you need help with how to do that to your benefit, we can get you in contact with someone who can help.
To learn more about Life Insurance, check out our most recent Life Insurance Blog Here.
