Irrevocable Life Insurance Trusts
When you pass on your assets, they are subject to exceptionally high estate taxes on the gifts or property they receive. These taxes can greatly reduce what is passed onto your heirs after death. Properties may have to be sold, or business ownership can become a serious issue. There is an option available to those who wish to avoid this problem called an irrevocable life insurance trust. These trusts are highly technical and require the owner of the life insurance policy to give up ownership of the policy to ensure a tax free transfer. It is very important that you contact a Fremont estate planning attorney if you are considering entering into an irrevocable life insurance trust.
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.