Experienced Handling of Estates and Life Insurance Trusts in Virginia
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When exploring your options for preserving your assets for your future and the future of your loved ones, it is important to examine all options, including irrevocable life insurance trusts. These are trusts that are set up for the purpose of owning a life insurance policy.
If you have questions or concerns about an irrevocable life insurance trust, turn to me, attorney and CPA Laura Moldowan. I am the founder of Dominion Wealth Law, PLLC, and am committed to helping clients understand their rights and obligations in estate and tax matters. I strive to ensure that my clients, their assets and legacies are protected in order to preserve them for the future.
A life insurance trust can save individuals and families thousands of dollars in estate taxes. However, there are several specific stipulations, such as:
- The beneficiary of the policy cannot be changed. The ability to change the beneficiary of the policy must be given up when the trust is created.
- The life insurance trust is irrevocable. This means that the policy cannot be changed and you cannot get the policy back. If you become uninsurable, you will be committed to this trust as your only life insurance.
- You can no longer borrow against the policy.
In spite of some possible drawbacks, many individuals discover that the tax-saving potential of a life insurance trust is worth the cost and hassle. This type of trust allows you to remove a significant asset from your estate; one you are unlikely to need access to during your lifetime. A life insurance trust also ensures that the life insurance benefits are paid out in full to your beneficiaries, instead of the government.
Contact a Haymarket, Virginia, Estate Planning Attorney
Contact me at Dominion Wealth Law today to further discuss the details of an irrevocable life insurance trust. I also provide clients with tailored and comprehensive estate planning services to help structure other aspects of their estates and futures.
