As you begin estate planning, you may start considering a life insurance trust. This kind of trust can help you protect your assets and guarantee that your wishes for them are honored. This trust owns your life insurance policy, and when you pass away, your insurance benefit is paid out to the trust. The trustee then uses that money to pay bills like legal fees and estate taxes before delivering the rest to your trust’s designated beneficiaries. So why would you want to use a life insurance trust? Read on to discover why this can be a valuable estate planning tool.
More Financial Control
The primary reason people opt to use a life insurance trust is to maintain financial control. If your spouse is a beneficiary but they slip into a coma after you pass away, the trust can help. In that instance, the trust is the beneficiary, and the trustee will utilize your insurance proceeds to pay for your spouse’s care without requiring any court appearances.
Creating a life insurance trust can also help you avoid probate, reduce your estate taxes, and ensure that you have the cash immediately available to pay necessary bills. Your trust can even help you avoid paying income and estate taxes. Probate is a lengthy and sometimes costly process that can delay the receipt of funds or assets from a will. By working with your Millman Law Group lawyer, you can find the most efficient ways to avoid the hassle of probate.
Avoid Guardianship for Minors
If a minor in Florida receives more than $15,000, guardianship must be established for the benefit of that minor. However, guardianship can be expensive and complicated. When you use a life insurance trust, when you pass away, funds can pass through the trust and be administered for the benefit of the minor without court intervention.
Maintain Governmental Benefits
If you name a beneficiary who is disabled and relies on government assistance, an insurance trust with special needs provisions is essential. This life insurance trust can be set up to protect the interest of your beneficiary so that they can receive your funds without putting their governmental benefits qualifications at risk.
Estate Planning Made Easy With Millman Law Group
Millman Law Group, PLLC is rare because it’s one of the only law firms that offer life planning in South Florida. From life care planning to the preparation of detailed estate plans, Millman Law Group has committed to serving Floridian elderly communities in Boca Raton, Palm Beach County, Ocean Ridge, Hillsboro Beach, and many other areas since 2018. Our dedicated team also specializes in special needs trusts and catering to any age demographic because we know for certain it’s never too early to start preparing you and your family for your future. For the latest news in estate planning and elder care law, follow us on Facebook, Twitter, Linked In, and Pinterest. You can also contact us at 561-463-6480.