Life Insurance Trusts.

Life insurance continues to be a uniquely favored asset for estate tax purposes. If insurance on your life is acquired by a properly drafted and administered life insurance trust (or an existing policy is transferred to such a trust by gift or sale, it is possible for the insurance proceeds to be excluded from the client’s taxable estate (three year lookback period for gifts). A life insurance trust is especially useful if you are property rich and cash poor, as it can provide your family with a cash flow to pay for estate taxes and administration expenses. If you are considering the purchase of significant life insurance policies, or already have them in place, please consider creating life insurance trusts.