Schedule your free Exploratory phone call

Click here to see how we
can be of assistance.

Careers/Open Positions

Explore all available job
listings and become a part of an amazing team.

Our Social Media

Connect with us on Social Media using the following buttons:

Visit our Podcasts

Listen in, Join the Conversation!

Maximizing the Benefits of Life Insurance: Why Using a Trust is Worth Considering

May 12, 2023

Life insurance is an essential part of any financial plan, providing much-needed financial security for you and your loved ones. However, many people overlook the potential benefits of using a trust for their life insurance. A trust is a legal arrangement that allows you to transfer ownership of your assets to a trustee, who manages them on behalf of your beneficiaries. Here are some of the key benefits of using a trust for your life insurance.

Control Over Your Assets

One of the most significant benefits of using a trust for your life insurance is that it gives you greater control over your assets. When you create a trust, you transfer legal ownership of your assets to the trust. This means that you retain control over your assets during your lifetime, but they are managed by the trustee on behalf of your beneficiaries. By using a trust for your life insurance, you can ensure that the proceeds from your policy are managed and distributed according to your wishes.

Protection Against Creditors

Another key benefit of using a trust for your life insurance is that it can provide protection against creditors. If you name your beneficiaries directly on your life insurance policy, the proceeds of your policy may be subject to creditor claims. By using a trust, you can protect the proceeds of your policy from creditors and ensure that they are distributed according to your wishes.

Privacy

Using a trust for your life insurance can also provide greater privacy for your beneficiaries. When you name your beneficiaries directly on your life insurance policy, the details of your policy become public record after your death. This means that anyone can access information about your beneficiaries and the proceeds of your policy. By using a trust, you can keep the details of your policy private and ensure that your beneficiaries’ privacy is protected.

Estate Planning Benefits

Finally, using a trust for your life insurance can provide significant estate planning benefits. Life insurance proceeds are generally included in your estate for estate tax

purposes. By using a trust, you can ensure that the proceeds of your policy are excluded from your estate, reducing your estate tax liability and preserving more of your wealth for your beneficiaries.

In conclusion, using a trust for your life insurance can provide numerous benefits, including greater control over your assets, protection against creditors, privacy, and estate planning benefits. If you are considering life insurance, it is worth exploring the potential benefits of using a trust to manage your policy. A financial advisor or estate planning attorney can help you determine whether a trust is right for your needs and goals.


Practice Areas:



Schedule your free Exploratory phone call

Click here to see how we
can be of assistance.

Careers/Open Positions

Explore all available job
listings and become a part of an amazing team.

Our Social Media

Connect with us on Social Media using the following buttons:

Visit our Podcasts

Listen in, Join the Conversation!