Page 31 - Example Guide

As such, it is essential to plan as far in advance of any major medical ailment as possible. It is never too soon to plan properly. As the above example demonstrates, proper planning is tremendously beneficial to your loved ones, and can be the difference between leaving a substantial financial legacy to benefit your family, or paying that money over to the government, or other unrelated third parties.
Irrevocable Life Insurance Trusts
The Irrevocable Life Insurance Trust (“ILIT”) is a unique instrument that serves several important purposes, two of which we will touch on here. Many people are unaware that the proceeds of life insurance policies are considered part of your estate for estate tax purposes. By using a properly drafted ILIT, however, you will bring the value of any life insurance polices you might hold outside of your estate for estate tax purposes on both the state and federal level. For those of you whose net worth puts them at or near the estate tax threshold, an ILIT is a necessary part of your estate plan.
An ILIT will also permit you to direct the disposition of your life insurance proceeds in a more specific manner than simply designating a beneficiary. Frequently, our clients have their ILIT benefit their spouse during the spouse’s lifetime, and upon the death of the spouse, benefit the children of their marriage. Since an ILIT is a trust, you can give specific directions in your trust instrument as to how the assets should be used, and protect the assets from your heirs’ potential creditors.
Estate Administration
The following documents should be brought to your attorney after the demise of a loved one:
An original or certified copy of a death certificate (look for a raised seal)
1. The original will (if any)
2. A funeral bill marked “Paid”
3. A basic family tree with contact information for close relatives
A list of assets including:
1. Real Estate
2. Bank and Brokerage Accounts
M. A. Connell Funeral Home - Page 31