Call: 203-637-6655 or email – Kyle Shepard

A Better Understanding of Life Insurance Held in a Trust.

Even with the new revisions to Federal Estate taxes, Trusts funded with Life insurance will continue to be a popular planning tool. Whether you focus on the sunset clause of the revisions in 2025, or the fact that most individual states still levy estate taxes, estate planning continues to have strong positive value.

From entitlement to taxes, life insurance trusts continue…

It is understood that the life insurance contract is a critical element in the success of trust planning.

Is the policy:

Term, Whole Life, Variable Life, Universal life, Indexed Universal Life, perhaps a private placement life policy, or lastly a Second to Die policy. A wide scope of policy types.

It is essential in the performance of the trust, that the life insurance coverage is “in force” at the time of the insured death. With Term policies you have a termination date, however with permanent coverage the contracts need to last indefinitely, or at least until the insured dies (both insured’s if it is a second to die policy).

There are many scenarios where that may not happen!!

Over the next 12 months we will be producing a blog based education on primarily permanent life insurance policies. Our initiative is to give you a better understanding of policy types, performance drivers, and policy lapse traps to avoid. It doesn’t make sense to execute a life insurance trust if the policy does not perform. Let’s make sure it does!


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