Understanding Life Insurance Trusts
How to Reduce or Eliminate Your Estate Tax Cost
18. Benefits of Life Insurance Trust
• Provides immediate cash to pay estate taxes
and other expenses after death.
• Reduces estate taxes by removing insurance
from your estate.
• Inexpensive way to pay estate taxes.
• Proceeds avoid probate and are free from
income and estate taxes.
• Gives you maximum control over insurance
policy and how proceeds are used.
• Can provide income to spouse without
insurance proceeds being included in spouse's
estate.
• Prevents court from controlling insurance
proceeds if beneficiary is incapacitated.