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Using Life Insurance in Estate Planning | Finance Strategists


Published on 2025-02-19 22:41:17 - MSN
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  • Explore the role, types, and steps of using Life Insurance in Estate Planning. Understand ILITs and tax implications, and avoid common mistakes.

The article from MSN discusses the strategic use of life insurance in estate planning. It highlights how life insurance can serve multiple purposes in estate management, including providing liquidity to cover estate taxes, debts, and expenses without the need to liquidate assets at potentially inopportune times. Life insurance can also be used to equalize inheritances among heirs, especially when there are business interests or real estate involved that might not be easily divisible. The article explains that life insurance proceeds are generally received tax-free by beneficiaries, making it an efficient tool for wealth transfer. Additionally, it touches on various types of life insurance policies like term, whole, and universal life, each offering different benefits in terms of coverage duration, premiums, and investment components. The piece also emphasizes the importance of choosing the right policy type based on one's estate planning goals, the need for professional advice to navigate the complexities of estate tax laws, and how life insurance can be structured within trusts to further optimize tax benefits and control over asset distribution.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/insurance/using-life-insurance-in-estate-planning-finance-strategists/ar-AA1zoPvU ]

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