With so many different types of trusts and wills, many people have questions about specific types of them, and so we’re going to go over the benefits of life insurance trusts in particular, because it is one that most people do not know nearly enough about. Basically, the trust itself is set up as both the owner and the beneficiary of a life insurance policy (or more.) This essentially steps around some of your potential estate taxes as otherwise either the owner of the insurance policy or the beneficiary will be taxed on the insurance money. Anther benefit of using a Life Insurance Trust is that it also provides money immediately in order to pay any estate taxes you may be facing, and can help you to avoid probate.
Benefits of a Life Insurance Trust Denver
Other than the tax benefits, Life Insurance Trusts also give the most control to you over your insurance policies and how they are used, and can prevent the court system from taking over if a beneficiary is incapacitated. Meurer Law Office in Denver are experts at estate issues, so if you want more information about how the benefits of a life insurance trust could affect your estate, please contact us today.