Life insurance – A powerful estate planning tool for nontaxable estates
Abstract: For years, life insurance has provided a source of liquidity to pay estate taxes and other expenses. But, with the estate tax exemption above $5 million, estate taxes are no longer a concern for the vast majority of families. Even for nontaxable estates, however, life insurance continues to offer significant estate planning benefits. As this article explains, life insurance can not only replace lost income, but wealth as well, in a variety of contexts. And it can be a way to support charities in a cost-effective manner. A sidebar explains that, even in a nontaxable estate, an irrevocable life insurance trust offers significant benefits.