Page 30 - Oshea Funeral Guide Final
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circumstance. At the time of writing,                    or near the estate tax threshold, an
          the period is five years. Had Rose                       ILIT is a necessary part of your estate
          gone into the nursing  home within                       plan.
          that window, she would have been
          subject to a penalty.                                    An ILIT will also permit you to direct
                                                                   the disposition of your life insurance
          As such, it is essential to plan as far in               proceeds in a more specific manner
          advance of any major medical ailment                     than simply designating a beneficiary.
          as possible. It is never too soon to                     Frequently,  our  clients  have  their
          plan properly. As the above example                      ILIT benefit their spouse during the
          demonstrates, proper planning is                         spouse’s lifetime, and upon the death
          tremendously        beneficial     to    your            of the spouse, benefit the children
          loved ones, and can be the difference                    of their marriage. Since an ILIT is a
          between leaving a substantial financial                  trust, you can give specific directions
          legacy to benefit your family, or paying                 in your trust instrument as to how the
          that money over to the government,                       assets should be used, and protect
          or other unrelated third parties.                        the assets from your heirs’ potential
                                                                   creditors.
          Irrevocable Life Insurance Trusts
          The Irrevocable Life Insurance Trust                     Estate Administration
          (“ILIT”) is a unique instrument that                     The following documents should be
          serves several important purposes,                       brought to your attorney after the
          two of which we will touch on here.                      demise of a loved one:
          Many people are unaware that the
          proceeds of life insurance policies                      1. An original or certified copy of a
          are considered part of your estate                           death certificate (look for a raised
          for estate tax purposes. By using a                          seal)
          properly drafted ILIT, however, you will                 2. The original will (if any)
          bring the value of any life insurance                    3. A funeral bill marked “Paid”
          polices you might hold outside of your                   4. A basic family tree with contact
          estate for estate tax purposes on both                       information for close relatives
          the state and federal level. For those
          of you whose net worth puts them at



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