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View 10 Transferring Life Insurance Policy To Trust Images

View 10 Transferring Life Insurance Policy To Trust
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. Your life insurance policy can be put into a trust, which is often referred to as 'writing life insurance in trust'. An irrevocable life insurance trust is a tool that can help beneficiaries erase the tax burden.

Life Insurance Trust - Boone Bank & Trust Co.
Life Insurance Trust - Boone Bank & Trust Co. from www.boonebankiowa.com
An irrevocable life insurance trust is a tool that can help beneficiaries erase the tax burden. Some of the states do not allow life insurance policies to be owned by a trust. In this case, the trust owns the policy and rolls it over to the beneficiary, who assumes the trust's acb in the policy.

In order to transfer your policy to a trust for estate tax purposes, you must create an irrevocable life insurance trust and then place the policy inside of the trust.

Your life insurance policy can be put into a trust, which is often referred to as 'writing life insurance in trust'. Whether you transfer your existing policy or direct the trustee to purchase a new one, someone must pay the premiums and it's best if that person isn't you. Life insurance proceeds are typically not taxable as income, but there are several cases in which a life insurance death benefit or policy benefits would be taxed. You may want to get additional tax and legal advice before doing so, but if you're happy to go ahead with it you can ask your life insurance provider to write the policy in trust when taking it out.