Life Insurance Trusts

Life insurance serves several purposes. It provides quick cash to your spouse and children for income replacement and credit protection. Life insurance can provide immediate funding for mortgages and education. And it can be used to pay estate taxes.

Life insurance is a unique asset. While it does not pass through your estate (probate), it counts towards the total dollars on which your estate is taxed. Therefore, we often recommend that you move it or purchase it in a separate trust entity so the death benefit does not count toward the total estate and estate tax bill.