Few people realize that, even though they may have a modest estate, their families may owe hundreds of thousands of dollars in estate taxes because they own a life insurance policy with a substantial death benefit.

An Irrevocable Life Insurance Trust is used to make the death benefit escape estate tax. Life insurance already escapes income tax. Avoiding both tax systems can make life insurance a very attractive investment for the future of your family.

Thus, for example, if a $1 million policy is owned in the ILIT, there would be no estate tax due on the proceeds, and the entire $1 million would be available for your heirs. Use of such a trust can also be employed to bypass the estate of the decedent insured’s surviving spouse or of any other beneficiary for estate tax purposes.

 A properly drafted life insurance trust keeps the insurance proceeds from being taxed in your estate as well as in the estate of your surviving spouse.

Where the insured is an owner of an existing policy, the insured must live for three years after the transfer in order to exclude the life insurance proceeds from his or her estate. There is no such limitation for a new policy purchased by the trustee.

Life insurance policies are complex contracts, and independent advisors are often more skilled than attorneys, accountants or other financial professionals in reviewing and fully understanding the terms of the policy, including guarantee and lapse provisions. Finally, these specialists are generally better-versed about the financial conditions of major life insurance companies and may have knowledge that may be relevant in determining which life insurance company to select.

Mintco Financial are independent Advisors with offices in New York and Florida and has experts in estate planning and life insurance who can help you determine if an Irrevocable Life Insurance Trust will benefit you. We can also obtain a life insurance policy if that is the step you are ready for.

Call us in New York at 716 565 1300 (Buffalo,NY)

                Florida 813 964 7100 (Tampa, FL)

Visit www.MintcoFinancial.com

Email us at info@mintcofinancial.com