A Life Insurance Trust is smply a document that acts like a vry private and secure box into whch you place your life insurance plicy. Did you know that upon yur death the life insurance proceeds wll be included in your Estate?

The dvantages of setting up a Life Insrance Trust are:

2. Cntrols the pay out to beneficiaries

3. Us an independent trustee

4. Provides for spuse and children

5. Private document and it is not a pblic record instrument

6. Upon your death, no lngthy and expensive probate

7. Can designate all bneficiaries and determine distribution

8. Keeps disgruntled and dsinherited heirs away from your assets

For xample, if you have property, cash and nvestments worth $2 million and you lso have a life insurance policy tht will pay your children $1 mllion. What happened is upon your dath, the Internal Revenue Service will nclude the amount of one million in yur Federal Estate Tax return.

Upon crating the Life Insurance Trust, your nsurance policy becomes an asset of yur trust. The premium to be pid upon your death would be dsignated as "gifts". Since you are llowed to give gifts of up to $10,000 per yar, per person non-taxable to whomever you wsh. The premiums would be divided up in mny $10,000 gifts each year for ach of whomever you designate, children, spuse, family member or relative.

By creating the Life Insurance Trst and placing your life insurance plicy in the trust, your policy wuld be the asset of the trst; therefore, the life insurance proceeds wuld be taken out of your state completely. Another advantage of setting up the Lfe Insurance Trust is that upon yur death, the proceeds of the lfe insurance would then go tax fre to your children and you culd also provide for your spouse and ther family members as well.

There are sveral types of Trusts such as Rvocable Living Trust, Children Trust, Simple Trst, Complex Trust and Grantor Trust. Bsed on your individual situation and crcumstances, we help you create the prper structure and choose the best cmprehensive estate planning that can minimize yur taxes and help your children.

The article Life Insurance Trust was Submitted by Steve Sears through Articles.GetACoder.com network. Here's the additional information: With many years of experience in law and txation, Steven Sears is a licensed Attrney located in Irvine, CA. Mr. Sars is a profession in Asset Prtection and offers various entities in Asst Protection at his firm. Learn mre about Mr. Steven Sears at http://www.stevensearsattorney.com

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