Do you have enough wealth and are suspecting that your estate will be taxed at the state or federal level? Then, you should invest in something called an Irrevocable Life Insurance Trust (ILIT). Usually, estate planning is essential to avoid paying a huge amount of estate taxes imposed by the state. Sometimes, people are forced to sell real estate, family business, or even stocks to raise cash for paying off the taxes.ILIT can help you with potential tax benefits. But it needs to be set up and monitored in the correct manner. But since it is a complicated legal arrangement, you will need professional assistance to complete it. The assets owned by the ILIT will not be considered as a part of your estate and therefore, cannot be used for inheritance or estate tax purposes. Your heirs will also not have to pay estate or inheritance taxes for these. We, at Legacy Partners, can be the ideal solution for you. We are one of the leading insurance companies in and around areas likeGlendale, North Hollywood, Northridge, Pasadena, Sherman Oaks, or Van Nuys, and have comprehensive insurance programs for life, health, disability, business separation, and even estate planning, and so on. So, you should resort to us for your ILIT creation or related advice.
Here, we have a few benefits of opting for ILIT. Take a look.
- Easy Premium Payments
The premiums of the life insurance policy will be paid by the trust. The granter has to transfer an adequate amount of money into the trust or pay straight away make the payment in behalf of the trust to cover it.
- Tax Benefits
ILIT makes the insurance premium payments with the gifts made to the trust. These gifts are no longer a part of the estate and the benefits distributed among the heirs will not be a part of the estate for tax benefits.
- Death Benefits
Death benefit is not put under taxable income by the IRS irrespective of whether you own an ILIT or not.
So, if you are interested in this insurance plan, then you should get in touch with us.