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Beth A. Botti, CFP®, ChFC, CLU, CDFA™
Financial Consultant
California Insurance License #0G24537
612 Wheelers Farms Road, Milford, CT 06460
Phone: 203-877-6556 Ext. 169
Fax: 203-301-0736
Email: beth.botti@equitable.com
September/October 2018
Legacy Planning
By itself, life insurance — with its income tax-free death benefit — offers families and business owners an efficient estate planning funding vehicle. When combined with a trust, life insurance can accomplish even more.
Multiple Benefits
A life insurance trust isn’t for everyone. Because the trust is irrevocable, you should make sure this estate strategy is what you want. If it is, a life insurance trust offers a number of benefits. This type of trust can provide control, because the trust can include terms that govern how its assets are distributed, which can be a priority for people with minor and young adult children. Another advantage is privacy, as any assets owned by the trust can avoid the public glare of probate.Estate Tax Tool
Another benefit is that any assets transferred to an irrevocable trust are removed from your taxable estate. This is still important for a couple of reasons.One, even while the threshold at which federal estate taxes are levied was doubled this year, some states have estate and inheritance taxes on far smaller amounts. If you live in one of these states, an irrevocable trust can save your estate’s beneficiaries money.
Two, life insurance death benefits are not subject to federal and many states’ income taxes, but they can be subject to estate taxes. Putting life insurance inside an irrevocable trust makes the policy’s death benefit free of both federal income and federal estate taxes. Just as with other assets, a trust’s terms can dictate when and how the insurance proceeds can pass to beneficiaries.
Getting Started
To set up a trust, you will need to name a trustee, which can be a loved one, an advisor or even a financial institution. Next, you will need to dictate the trust’s terms for distributing trust assets to beneficiaries, whom you must also name.If an irrevocable life insurance trust is of interest to you, consult an experienced estate planning attorney to
learn how to get started, as well as an insurance professional to learn how you can most effectively secure
insurance coverage.
GE 2141123 (6/18)(Exp 6/20)
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Duly registered and licensed financial professionals offer securities through Equitable Advisors, LLC (NY, NY 212-314-4600), member FINRA,SIPC (Equitable Financial Advisors in MI & TN), offer investment advisory products and services through Equitable Advisors, LLC, an SEC-registered investment advisor, and offer annuity and insurance products through Equitable Network, LLC (Equitable Network Insurance Agency of Utah, LLC in UT; Equitable Network of Puerto Rico, Inc.). Equal Opportunity Employer - M/F/D/V. Equitable Advisors and its associates and affiliates do not provide tax, accounting, or legal advice or services. Representatives may transact business, which includes offering products and services and/or responding to inquiries, only in state(s) in which they are properly registered and/or licensed. Your connection to this website does not necessarily indicate that the sender is able to transact business in your state. The information in this website is not investment or securities advice and does not constitute an offer. For more information about Equitable Advisors, LLC you may visit https://equitable.com/crs to review the firm's Relationship Summary for Retail Investors and General Conflicts of Interest Disclosure.
GE-6572038.1 (4/24)(Exp. 4/26)
CFP®, and CERTIFIED FINANCIAL PLANNER™ are certification marks owned by the Certified Financial Planner Board of Standards, Inc. These marks are awarded to individuals who successfully complete the CFP Board's initial and ongoing certification requirements.
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