Life Insurance Trusts
A planning technique where a trust is the owner and beneficiary of a life insurance policy, removing it from the grantor's taxable estate.
KNOWLEDGE HUB
Resource Library
Where our experience becomes your valuable resource.
Client Guide
Estate Planning Workbook
A comprehensive workbook to help families and their advisors conduct a review of their life insurance portfolio.
Solution Snapshot
Policy Improvement
Initiated as a policy audit and wanted to consolidate multiple policies for a higher death benefit and move coverage to a new trust
Solution Snapshot
Another Lesson in Leverage
Establish a trust for estate planning and gift federal lifetime exemptions to fund premium payments on second to die coverage via a short-pay design for a higher ROI.
Candidates
Solutions are not one size fits all. For every planning technique, there are determining factors that illustrate whether the technique will fit the planning for an individual or family. Outlined below are ideal candidates who might benefit from exploring Life Insurance Trust solutions.
Wealth and Legacy Insights from our Team
Faqs
Frequently Asked Questions
Find answers to your questions about Heirmark's life insurance solutions, underwriting process, and advisory services.
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A trust serves as a powerful tool for asset protection by removing gifted assets from your taxable estate. This planning technique not only helps in reducing tax liabilities but also ensures that life insurance proceeds held within the trust are separated from your taxable estate, thereby preventing federal estate taxes on death benefits. To enact these protections, the trust must be irrevocable, meaning that once it is established, you cannot change it or reclaim the gifted assets or the policy. An Irrevocable Life Insurance Trust (ILIT) can act as a legal shield, protecting proceeds from creditors, ensuring privacy, avoiding probate, and managing distributions to beneficiaries.