Estate Planning

Life Insurance and Estate Planning

Title and Description
Are life insurance proceeds income taxable?
In general, life insurance proceeds paid to you because of the death of the insured are not subject to federal income tax.
The death benefit from insurance on my life will be paid to an irrevocable life insurance trust (ILIT). What if those funds are needed to pay my estate taxes?
These proceeds may escape estate taxation as long as the trust owns the policy and you haven't retained any incidents of ownership.
What is a life insurance trust and why should I consider establishing one?
A trust that has the power to purchase life insurance policies on the grantor, the grantor's spouse, or the trust beneficiaries.
When I die, is my beneficiary required to take a lump-sum payment of my life insurance death benefit?
It isn't necessary for your beneficiary to take a lump sum, although many people prefer that option.

Financial Planning


 
 
 
 
 
 
 
 
 
 
 
74927
Copyright © 2014 Federated Investors, Inc.

Connect with us: LinkedIn YouTube iTunes