What are an ILIT’s components?

Irrevocable life insurance trusts (ILIT’s) are used to: create an estate for heirs using life insurance shield life insurance payouts from estate tax replace assets given to charities or placed in IIOT’s (Irrevocable Income Only Trusts) People often make the mistake of naming their estate as the beneficiary of their life insurance policy. This makes the proceeds of the policy, known as the death benefit, part of the taxable estate. A simple way to avoid estate tax issues is to transfer life insurance policies into an irrevocable life insurance trust. The value of the insurance remains outside your taxable estate, … Continue reading What are an ILIT’s components?

Why would I want my irrevocable trust to own my life insurance?

If you own life insurance, it is included in your taxable estate and the proceeds will be taxable for federal estate tax purposes. So, in 2009, an individual is allowed a federal estate tax exemption on their first $3.5 million of assets, including all life insurance policies in their name. (This fact comes as a surprise to many people but this treatment of insurance proceeds dates back almost to the inception of the federal estate tax.) If life insurance policies are owned by a properly structured ILIT, the proceeds will be free of the estate tax. What if I don’t … Continue reading Why would I want my irrevocable trust to own my life insurance?

What is an irrevocable life insurance trust?

An irrevocable life insurance trust (ILIT) is an irrevocable trust that is created to own and be the beneficiary of life insurance policies on the trust maker’s life. A reason to use this type of trust is to remove the insurance proceeds from a person’s taxable estate. Remember, that normally when you own a life insurance policy, the proceeds from that policy are included when calculating your taxable estate for tax purposes. Continue reading What is an irrevocable life insurance trust?

A Courtesy Sneak Peak at Our New Book

Decades from now, when your grandchildren speak to their grandchildren about you, what would you like them to share? Are there family traditions that you hold dear and hope that they continue for generations to come? How will future generations learn the origins and importance of those traditions? A Guide to Crafting Personal Legacy Statements: an Ancient Legacy Tool of the Wealthy and Wise helps you indentify and generate responses to these questions and more. This is not a “how-to” book for writing a life story or family history, but a dynamic tool for sharing a legacy, your’s or your family’s legacy. Who and what have shaped your life? What do you value most? What do you want future generations to remember about you? A Guide to Crafting Personal Legacy Statements empowers you to create a powerful legacy statement to be shared at the time of your choosing during your life or after your time has passed. Continue reading A Courtesy Sneak Peak at Our New Book

A conversation about “A Guide to Crafting Personal Legacy Statements” with Don West, Jr. and Tim Morrison (Pt. 1 of 6)

A Presentation by Don West, Jr. and Tim Morrison at the University of Miami on Nov. 20, 2008 more about "Legacy Statements Pt. 1 of 6 – DonWes…", posted with vodpod Released in November of 2008, A Guide to Crafting Personal Legacy Statements – An Ancient Tool of the Thoughtful, Wealthy & Wise promises to become a valued treasure to both you and many generations to come. See the complete interview at http://www.DonWestJr.net – An online community dedicated to Empowering Legacy Development and Strategic Action-Based Life Planning Continue reading A conversation about “A Guide to Crafting Personal Legacy Statements” with Don West, Jr. and Tim Morrison (Pt. 1 of 6)

Who Needs Legacy & Estate Planning?

Contrary to popular belief, Legacy & Estate Planning isn’t just for millionaires – it’s for anyone who cares about what happens to their assets after they pass or who desires to leave a record for future generations to be able to access. That said, Legacy & Estate Planning is particularly important for people in a number of basic life situations: Married Couples: Each spouse must have a separate will. Joint wills can create legal issues if you both pass within a few weeks or months of each other. Divorced Couples: Make sure your assets go to the “right” people, especially … Continue reading Who Needs Legacy & Estate Planning?