Houston Estate Planning and Elder Law Attorney Blog
If you are looking for ways to ensure that your loved ones are well-protected in the event of your death, consider the advantages of a life insurance trust. A life insurance trust is a form of legal agreement that puts the grantor’s life insurance into a trust. The designated trustee gains control of the insurance policy, and when the grantor dies, the trustee is responsible for distributing the money from the policy to the grantor’s designated beneficiaries.
Why Use a Life Insurance Trust?
There are several key advantages to the life insurance trust. First, by putting your life insurance into a trust, you allow the funds from the policy to bypass probate completely. This gets money into your beneficiaries’ hands more quickly, more efficiently, and more privately.
The life insurance trust also guarantees some form of liquidity when you die. The cash from the policy can go toward settling the estate, paying off debts, covering the cost of a funeral, or paying estate taxes. The money could also provide your beneficiaries with immediate cash for payments that you might have been making before your death, so that they can have time to figure out a long-term solution in your absence.
Next, the life insurance trust provides important tax benefits. Your beneficiaries can receive the funds from your trust without a tax penalty, which puts more money into their pockets compared to taxable assets. This can end up making a significant difference for those who depend on their loved ones’ estates long after their loved ones are gone.
By using a life insurance trust, you can take care of your loved ones and protect your legacy long after you are gone. We hear from clients who are on the receiving end of a life insurance trust that they are grateful for how their grantor looked out for them even in the event of their death. If you would like to learn more about how to use this tool in your estate planning journey, contact a Houston estate planning attorney that you can trust.
Do You Need a Houston Estate Planning Attorney for You and Your Family?
At McCulloch & Miller, we believe in prioritizing our clients’ needs and goals when helping them make decisions around their estate plans. Every client is different, and every client has a slightly different estate plan based on their own priorities. If you are looking for a group of Houston estate planning attorneys that will take the time to get to know you and provide client-centered representation for you and your family, we are the firm for you. Our three decades of experience in the field make us well-equipped to handle all of your estate planning needs.
If you would like to set up a call with one of our Houston estate planning attorneys at McCulloch & Miller, give us a call at 713-936-9073. You can also fill out our online form to tell us about yourself and have a member of our team contact you as soon as possible regarding next steps.