If you have a sizable life insurance policy and wonder if it may incur estate taxes, you may want to learn about life insurance trusts. This post will explore some details about these trusts and how a life insurance trust lawyer can assist with the processes involved.
What is a Life Insurance Trust?
A life insurance trust is a legal entity used to manage a life insurance policy or policies on behalf of the trust’s beneficiaries. The purpose of a life insurance trust is to minimize estate taxes and other costs related to passing on assets upon death.
Requirements for the Creation of a Life Insurance Trust
Three major elements are required to establish a life insurance trust:
- It must be an irrevocable trust.
- You may not be named as the trustee.
- The trust must be in place for at least three years before your death.
So, you must first establish an irrevocable trust and choose a trustee. The life insurance policy is then transferred to the trust, and the trust becomes the owner of the policy. You will no longer have authority over the policy. Still, you may select who will have control, who will benefit from it, and how funds are to be distributed to the beneficiaries.
Do You Need a Life Insurance Trust Lawyer?
If you’re considering setting up a life insurance trust, it’s imperative to have an expert attorney on your side. You’ll need a skilled life insurance trust lawyer who can help you through the legalities of setting up the trust and ensure that it’s done correctly.
Life insurance trusts involve complicated processes that require careful attention to detail. A life insurance trust lawyer can guide you through the process and assist in drafting the paperwork so that everything is in order when it comes time for your loved ones to use it.
Contact a Los Angeles Area Life Insurance Trust Lawyer
The life insurance trust lawyers at the Law Offices of Michael K. Lanning, APLC, can help you set up a trust that will give you peace of mind and protect your life insurance funds. We can also help you choose your trustees and beneficiaries and guide you on the best strategies to meet all your specific estate planning needs. Let us put our over three decades of estate planning experience to work for you. Contact us at 310-820-1600 or go to our website to learn more and set up a consultation.
We serve West Los Angeles, Santa Monica, Pacific Palisades, Manhattan Beach, and the surrounding Los Angeles communities.