Life insurance in estate planning can help provide flexibility and manage taxes, but many are yet unaware of it. As much as estate planning is meant to help you conserve and manage your assets while you’re alive, it is equally crucial to conserve and control the distribution assets after your death.
Here are a few details to consider about making use of life insurance in estate planning.
Life Insurance Strategies to Avoid
Life insurance strategies can make or break your estate plan, so you have to be very careful in this regard. Nevertheless, these are some of the strategies you should avoid at all costs.
Naming an Estate as a Beneficiary Instead of Naming a Person as a Beneficiary
Your assets will be placed at risk of estate tax and creditors. Plus, it would to a larger amount of paperwork to handle for your executioner.
Name at least two Beneficiaries
You should always have a backup plan, especially for situations like using life insurance in estate planning. There is a chance that one beneficiary might face some undesirable conditions. The other one should be ready for the task.
Review the Terms of your Estate Plan
Life insurance in estate planning is not a “once and done” process. On the other hand, it is critical to keep reviewing your terms once every few years.
An Experienced Estate Planning Attorney Would Make your Life Easy
You might have gotten some idea by now about how challenging estate planning can be.
However, you can divide your stress with a knowledgeable estate planning attorney who would not only assist you in any undesirable situation but would also walk you through the entire process.
At Keystone Asset Protection and Estate Planning, we would be more than delighted to provide our services so that you can protect your assets and preserve your hard work.