Life Insurance and Its Role in Estate Planning

Wealth Transfer, Estate Taxes, Inheritance Planning, Trusts, Asset Liquidity.

Life insurance is one of the most efficient tools for Wealth Transfer. In many jurisdictions, the proceeds from a life insurance policy are paid out tax-free to beneficiaries, making it an ideal way to settle Estate Taxes without liquidating property or business interests.

Professional Inheritance Planning often involves placing a life insurance policy within an Irrevocable Life Insurance Trust (ILIT). This keeps the payout outside of the taxable estate, maximizing the amount passed down to the next generation. It provides the necessary Asset Liquidity to pay off creditors or equalize inheritances among heirs, ensuring a smooth transition of wealth.