In the Second Week of Planning, My Advisor Said to Me…

Trusts Can Help with Gifting

There are many types of trusts that can help an individual gift their assets to their heirs.  Establishing the right trust takes careful planning with trusted advisors.  The right attorney can help with the nuances of estate planning and the right insurance specialist can help identify the proper insurance products and premium funding techniques that will help navigate gifting limitations.

If there is an intent to use life insurance inside the trust, the best time to start underwriting for a policy is while the trust is being established.  Document preparation and policy determinations both take time, so tackling both simultaneously can cut out some of the delays that happen when one is completed before starting the other.  The size of the policy that is needed and the premium tolerance should be weighed as part of the estate planning process before the life insurance acquisition begins.

If previous advisors have made mistakes with the estate planning process, an audit of the trust documents and any inforce life insurance policies can provide a chance to correct anything that has been mishandled.  We have seen examples where life insurance policies are underfunded and cannot fulfill their intended purpose.  Those policies can be analyzed for options to help the client get back on track.  Additionally, the audit can identify when a trust may need to appoint a new trustee or add beneficiaries.

Click on this link to read about the Best Practices For Trust-Owned Life Insurance.

Contact us with any questions or opportunities to help your clients achieve their goals.  This is what we enjoy doing for only a select number of families, businesses, and charitable institutions each year, and we look forward to hearing from you.