Understanding Life Insurance Trusts
Obtaining Life Insurance coverage is often a part of the estate planning process. If you have multiple life insurance policies you may want to consider a Life Insurance Trust. a life insurance trust is defined as a trust that is created to acquire and own life insurance on the life of the settlor and that is not intended to hold any other assets. A life insurance trust is typically set up to provide liquidity to an estate. Generally, the life insurance policy held in trust will reduce estate taxation when the settlor dies if drafted properly. The life insurance proceeds will be paid directly to the designated beneficiaries of the policy.
In order to learn more about life insurance policies you should consult life insurance brokers. If you have multiple policies and are considering a life insurance trust you should consult an experienced los angeles estate planning attorney.