Return to Main Site What's Better than Life Insurance?
Post By George in Estate Planning - DocumentsYour beneficiary getting 100¢ of every $1.00 of benefits. An “irrevocable life insurance trust” (“ILIT”) is the best deal going, after the estate tax exemption itself. Just as “Roth IRA” distributions are the IRA distributions you don’t pay tax on, and municipal bond interest is the bond interest you don’t pay tax on, your estate won’t pay any estate tax on life insurance proceeds if the policy was owned by a properly structured and maintained ILIT. If you can afford the premiums, you can almost certainly afford to shield the proceeds from estate tax. Having enough coverage is smart; permanently shielding it from state and federal estate tax is wicked smart.