Legal Guidance For The Intersection Between Life Insurance And Estate Planning
Last updated on June 10, 2024
Life insurance offers your loved ones a financial safety net once you are gone. It can also be used to cover your final debts, pay for funeral and burial costs and protect the business you have established as it transitions under new leadership.
Cavitch Familo & Durkin Co., L.P.A., has been guiding clients in Cleveland, Ohio, through the intricacies and challenges of effective estate planning for more than 100 years. You can trust our attorneys to take a focused, comprehensive approach to your estate planning needs – and that includes helping you understand how life insurance can be effectively woven into your goals.
What Are The Benefits Of Including Life Insurance In Your Estate Plan?
Life insurance provides a tax-free, lump-sum death benefit to your designated beneficiaries upon your passing. Some key benefits include:
- It avoids probate entirely, so money can go directly to your loved ones without delay. That provides much-needed liquidity that can help them meet their immediate obligations and provide financial stability.
- It can be used to mitigate estate tax liabilities. The use of certain trusts, such as an irrevocable life insurance trust, can reduce federal estate taxes and leave more assets for your loved ones.
- It can assist with business succession planning. Life insurance can provide funds for a buy-sell agreement and/or help the business continue operations without placing financial burdens on your surviving partners.
- It can equalize inheritances. When you have hard-to-divide assets, such as a closely held business, a farm or real estate holdings, life insurance can make it easier to give each of your beneficiaries a fair share of the estate.
Working with an experienced estate planning attorney can help you determine exactly what insurance needs you have.
Find Out More About How Life Insurance Can Be Used In Estate Planning: Make A Call
Life insurance is a tool – and you can learn how to use it to effectively protect your loved ones, your business and the legacy you leave behind with guidance from our attorneys at Cavitch Familo & Durkin. Call 216-621-7860 today to schedule a consultation and learn more.