Estate Planning and Insurance

Jacksonville Live Insurance Trust Lawyer ILITAs a Florida Estate Planning Lawyer, I often advise people about the effects of an insurance payout on their beneficiaries or their taxable estate value.

Generally Life Insurance is not income taxable to the beneficiary of the policy but does increase the value of the estate. In the event that life insurance value would increase the value of the estate to the point that estate tax payment would be generated, it can be advisable to create a Florida Irrevocable Life Insurance Trust (ILIT). A Florida ILIT not only maintains the income tax benefits of traditional life insurance but also can reduce or eliminate the Federal Estate Taxes.

I recently read an article on Investors Business Daily that discusses the Pros and cons of company paid insurance. Anyone who has or is considering company paid insurance should read this article and review the taxable effects and investment costs with their accountant and financial planner.

Contact Information