Irrevocable Life Insurance Trusts
When it comes to transferring assets in accordance to your wishes in the event of your death it is important to be aware of the taxes and other expenses involved in the transfer process. Many individuals are unaware that transfer taxes and income taxes can deplete the funds you transfer by more than 85%. Advanced estate planning focuses on minimizing the impact of these expenses on your beneficiaries. When you plan out the future of your estate, you assume that your beneficiaries will receive the full amount of the assets you have allocated for them. Without the proper planning you run the risk of leaving only a fraction of your assets to those you love. A Fremont estate planning attorney can help you navigate through the complex laws and high taxes associated with transferring assets.
Gift tax and estate tax are two very serious taxes one should be aware of when planning the future of his or her estate. Without proper legal guidance it could be very possible to lose most of the value of your estate. A gift tax applies to any transfers made during your lifetime. Estate tax applies to the transfer of funds after an individual's death. There are a number of deductions that can lower this tax such as marital or charitable deductions.
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Fremont irrevocable life insurance trusts
You need to contact an attorney from our firm, The Singh Law Firm, immediately if you are considering entering into an ILIT, or irrevocable life insurance trust. The name says exactly what it is: irrevocable. Individuals who chose to enter into these contracts cannot back out of them once they are signed. The drawbacks of an ILIT are as follows:
- Individuals lose all ownership rights of the insurance policy
- The policy cannot be changed in any way
- You may not back out or forfeit the policy
- Death within three years of contract agreement may nullify any prior arrangement made unless specified
Our law firm can help review your options and outline the choices you have available. We understand that passing along your estate tax free to your spouse, child or friend is very important to you. Our law firm has a clear understanding of irrevocable life insurance policies as we have represented thousands of clients over our career.
This type of estate plan can be of great value to families who want to assist their heirs in avoiding losing the benefit of their hard work and accomplishments. It is crucial that you understand the benefits of an irrevocable life insurance trust . Our legal team can help you weigh your options and provide you with legal representation when you chose which path to follow. We will help you determine the possible taxes that could be passed on with your estate so you are able to make an informed decision.