LIFE INSURANCE AND YOUR ESTATE PLAN 

There are many reasons for making life insurance part of your estate plans. For example, the death proceeds generally are received income-tax-free by the beneficiary or beneficiaries. Here are some other basic reasons:

- It can provide financial protection for the family, both during and after the administration of the estate.

- It ensures that the proceeds will go to whomever you desire, even if your will proves to be invalid.

- It avoids a forced sale of estate assets to meet expenses, pay off debts, or pay estate taxes.

- It can complement business continuity plans.

Inclusion of proceeds from life insurance in your estate for federal estate tax purposes may diminish some of the benefits outlined above. When you own a life insurance policy or possess any incidents of ownership, the death benefit is included in your estate for the purpose of calculating federal estate taxes.

Recommendations are sometimes made to have a life insurance policy owned by an individual other than the insured. Typically this recommendation is made so that the policy death benefit is not taxed in the estate of the insured.

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DISCLAIMER: Law Offices of Walter J. Zukowski & Associates does not take responsibility for how you use this document. By use of this document, you acknowledge that you have read the sub-page entitled, "Terms and Conditions", and agree to be bound by them. You are strongly advised to consult with your own attorney.