Life Insurance Trusts As A Means For Asset Preservation

At Cipriani & Werner, P.C., we help people develop strategic estate plans that address a wide range of personal, medical and financial concerns, such as asset preservation. Life insurance trusts play a role in this by protecting that portion of your estate from taxation. Through irrevocable life insurance trusts in Pennsylvania, you can provide for your loved ones in the event of your passing, without losing estate value through taxation.

Even though there are clear benefits to establishing a life insurance trust, every estate is different. Make sure you have an experienced estate planning attorney who can ensure you and your loved ones are protected. Schedule a consultation with us, the lawyers of Cipriani & Werner, P.C., today.

Taxes And Your Estate

When planning for your future, you will find that estate taxes can play a significant role in how much will be left to actually distribute to your loved ones if your estate value is too high to allow for estate tax exemption. In the event of your passing, your estate executor will need to use your estate to finalize affairs with creditors and pay taxes. In some cases, estate gifts left to heirs and beneficiaries can end up burdening the recipients with unexpected tax obligations.

Trusts, such as life insurance trusts, can help ensure the most value possible is passed onto your loved ones. Through a trust, the money is held in the policy and is owned by the trust rather than by the individual whose life is being insured. If you form an inter vivos (formed while you are alive) life insurance trust, you will not benefit from it personally. Instead, the policy will be held by the trust until your passing, at which point funds will be paid out to your heirs and beneficiaries.

A Reputable Harrisburg Law Firm Is Here To Help

To learn more about what options are right for you, call us at 717-884-8923 or contact us online to arrange a meeting. We can answer your questions and guide you through the estate planning process with confidence.