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