Estate Planning
Estate Planning is the most important step a client can take to ensure their legacy passes intact to their heirs. A professionally designed estate plan allows your client to employ various techniques that can minimize estate settlement costs and satisfy their objectives by:
- Reducing estate and inheritance tax liability
- Conserving principal
- Avoiding costly, frustrating settlement delays
- Minimize income taxes
- Reduce probate and administrative costs
Will - the key to your estate planning success
If you die without a will, the state decides how your property is distributed, a troublesome and potentially costly situation for your heirs. Preparing a will is a vital step in your client's estate plan because it insures their wishes will be carried out.
Types of Wills:
- Simple Will
- Will with Testamentary Trust
Trusts creates flexibility within the estate planning process
Trusts can be established for:
- Tax reasons
- Asset management
- Charitable purposes
- Privacy reasons
- Delay Distributions until a future time or event
Trusts can be established to operate during your client's lifetime or upon death or both. Trusts can be irrevocable (not changeable) or revocable (changeable).
There are many additional reasons your clients will plan (just to name a few):
- Passing the family business intact to the next generation
- Providing an equitable inheritance to all children or grandchildren, when one large asset may not be easily divided
- Payment of expenses incurred when your client is not able to care for themselves.
- Payments of income tax due on certain of your client's assets such as qualified retirement plan assets when received by the heirs
There are many ways to pay estate and final expenses (cash, liquidate assets, pay in installments, borrow money, use of discounted dollars).
Advantages of using life insurance inside of an estate plan:
- Premium payments can be spread out over a period of years
- Heirs don't have the burden of paying estate settlement costs
- Proceeds are immediately available when taxes are due
- Proceeds are free of federal income tax
- Generally, insurance policy proceeds are free of estate tax, if a third party or an irrevocable trust owns the policy
- Generally proceeds are not subject to probate expenses
- Proceeds can replace the financial loss caused by premature death
For a personalized solution for your client's need please contact us at 866.452.3670, or email us at sales@pipaclife.com.
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