The primary purpose for establishing an irrevocable life insurance trust is to remove life insurance from an estate which in effect helps avoid being subject to estate taxes. If a taxpayer owns an insurance policy, the value of the death benefits paid to the beneficiaries is added to their estate. It is this reason that individuals often transfer the ownership of the policy to their beneficiaries, or a trust created for the purpose of holding title to the insurance contract. … Read more →

In estate planning, a trust known as a Bypass Trust is used together with a marital trust in order to pass the maximum amount of money to beneficiaries without having to pay estate tax. In this type of tax planning structure, both spouses are able to use their unified credit to offset estate taxes due. Bypass Trust Planning Basically, the way it works is the marital deduction trust receives all assets left directly to the surviving spouse or for their … Read more →

A payment on death bank account is used to transfer the account upon death to the named beneficiary without having it go through probate. This type of account is usually used for savings, checking, brokerage accounts, and certificates of deposit. It is important to note that this type of titling of property is not available in all state. Community State POD Accounts Taxpayers who live in a community property state need to be aware that finds in a POD account … Read more →

The objective of estate planning is to provide individuals with an effective way to control their assets, both during and after death. In terms of how that breaks down, there are generally three objectives to estate planning. The first objective is to provide for the care of family members and the continuation of the lifestyle that they have grown accustomed to. The second objective is to ensure that the people you actually want your assets to be transferred to receive … Read more →