Nate Obringer photo
Prudential logo

Nate Obringer, CFP®, RICP®

Financial Planner

 

Prudential Advisors

9800B McKnight Road, Suite 223

Pittsburgh, PA 15237

 

Phone:  412-318-4129

Fax:        877-840-2322

 

Email: nate.obringer@prudential.com

Website: www.prudential.com/advisor/nathan-obringer

September/October 2018

Legacy Planning

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.

1001342-00001-00


SUBSCRIBE

Enter your Name and Email address to get
the newsletter delivered to your inbox.

Please include name of person that directed you to my online newsletter so I can thank them personally.


CONTACT US

Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

Nate Obringer is a Financial Planner with, and offers securities and investment advisory services through LPL Enterprise (LPLE), a Registered Investment Advisor, Member FINRA/SIPC, and an affiliate of LPL Financial.
"Prudential Advisors" is a brand name for the proprietary retail sales channel of The Prudential Insurance Company of America ("PICA") and its insurance company and other affiliates (collectively "Prudential"). Prudential Advisors financial professionals are licensed insurance agents of Prudential.
Pursuant to a strategic relationship among Prudential, LPLE, and LPL Financial, Prudential Advisors financial professionals provide securities brokerage services and/or investment advice on securities solely as registered persons of LPLE, an affiliate of LPL Financial. These financial professionals are permitted to brand under "Prudential Advisors". LPLE and LPL Financial are not affiliated with Prudential.
This newsletter is general educational information provided by a Prudential Financial Professional and is not intended to market or sell any specific products and services, but rather provide general information about the subject matter covered only.
Prudential Advisors and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.