YES! Life Insurance is GOOD for Estate Planning. This is a pretty hot topic right now with my clients. Keeping this relatively simple, Life Insurance can provide liquidity for taxes, to prevent fire sale situations of property and assets, and to equalize bequests in illiquid estates. The death benefits of life insurance are able to meet all of these demands and more.
I often will ask clients what exemption amount there were using for planning purposes. This leads into a discussion of past exemption amounts and where we stand today. One thing is certain and always comes out.....we believe taxes will increase in the future so using life insurance to help provide a buffer of sorts is helpful. It is important to realize that you are planning, meaning this plan is a working plan that can change yearly versus just putting together a plan and trying to depend on it in a changing environment.
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I often will ask clients what exemption amount there were using for planning purposes. This leads into a discussion of past exemption amounts and where we stand today. One thing is certain and always comes out.....we believe taxes will increase in the future so using life insurance to help provide a buffer of sorts is helpful. It is important to realize that you are planning, meaning this plan is a working plan that can change yearly versus just putting together a plan and trying to depend on it in a changing environment.