If you have an estate plan, do you still have a need for a life insurance policy? Even if you have plenty of assets to pass down to your loved ones after your passing, having life insurance will still help you prepare for the unexpected.
5 Ways to Include Life Insurance into Your Estate Plan
A life insurance plan is always a good idea, whether you have loved ones who would benefit from the money or not. No one knows when they will pass away, and financial assistance is always appreciated to help with financial stress caused by the death of a loved one.
- Paying for Funeral Arrangements: Use money from life insurance to pay for the end-of-life care of your choice. It can be overwhelming to pay for a gathering event for all of the people who want to attend and honor a life well-lived. Having the money from the life insurance company can ease the burden without having to dip into savings.
- Rolling Life Insurance Money into a Trust: Use the money from life insurance to support living family members after your death. You can leave instructions for a trustee to dole out the money according to a timeline or an age of inheritance.
- Faster Payout for Loved Ones: There can be a lot of red tape when it comes to reviewing the will, possible probate, and dividing of assets. Life insurance funds come through quickly and can be divided among the beneficiaries as they await other inheritances.
- Ease in Dividing Inheritance Payments: Perhaps you have two beneficiaries, and it is difficult to divide assets straight down the middle. The life insurance payment can add ease to this task. For example, one beneficiary may get the life insurance money while the other beneficiary gets a real estate property.
- Covering Estate Taxes: The family has nine months to pay estate taxes after someone dies. Life insurance policies are a great way to cover this estate tax. Then, the family does not have to use unplanned funds or come up with the money to pay the taxes on the entire estate.
Do you have questions about your estate plan? Shoup Legal is here to help. Reach out to us at (951) 455-4114 or send an email to [email protected] to get your questions answered today.