Life Insurance May Be Your Best Estate Planning Tool

Opiela, Nancy
March 2000
Journal of Financial Planning;Mar2000, Vol. 13 Issue 3, p62
Academic Journal
This article identifies life insurance investment as a strategy used by U.S. financial planners for protecting their client's estates from taxes. Most clients have a negative feeling towards insurance but estate tax savings actually lighten the burden of high premium cost. The life insurance tool of choice for many planners is the irrevocable life insurance trust, which ensures that the estate proceeds will not be hit with federal and estate taxes. Other life insurance investments introduced by financial planners are second-to-die life insurance, split-dollar contract arrangement, and charitable remainder trust.


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