Page 31 - Powell Funeral Guide
P. 31
insurance policies are considered part of certificate (look for a raised seal)
your estate for estate tax purposes. By 1. The original will (if any)
using a properly drafted ILIT, however, 2. A funeral bill marked “Paid”
you will bring the value of any life 3. A basic family tree with contact
insurance polices you might hold outside information for close relatives
of your estate for estate tax purposes on
both the state and federal level. For those A list of assets including:
of you whose net worth puts them at or
near the estate tax threshold, an ILIT is a 1. Real Estate
necessary part of your estate plan. 2. Bank and Brokerage Accounts
3. Vehicles
An ILIT will also permit you to direct the 4. Retirement Accounts
disposition of your life insurance proceeds 5. Annuities
in a more specific manner than simply 6. Insurance Policies
designating a beneficiary. Frequently, 7. Valuable Collections
our clients have their ILIT benefit their
spouse during the spouse’s lifetime, and The above documents and information
upon the death of the spouse, benefit the will assist your attorney in drafting the
children of their marriage. Since an ILIT is probate or administration petition for
a trust, you can give specific directions in your loved one’s estate. It is important to
your trust instrument as to how the assets note that the IRS form 706 - the estate tax
should be used, and protect the assets return - must be filed within nine months
from your heirs’ potential creditors. of the death of the decedent (or within
the six months extension window if one
Estate Administration is timely applied for).
The following documents should be
brought to your attorney after the demise The probate or administration processes
of a loved one: are formal judicial proceedings which
take place in the decedent’s county’s
An original or certified copy of a death
Powell Funeral Home, Inc. - Page 31
