MarketWatch Life Insurance and Estate Tax Considerations
Marshall Loeb MarketWatch explains how life insurance can protect heirs after death. It notes that life-insurance payouts are not subject to income tax but can affect estate taxes.
Irrevocable Life Insurance Trusts for Estate Tax Relief
The article explains using an irrevocable life insurance trust ILIT to remove ownership of life policies from the estate. It warns you must convince the IRS you relinquish control then transfer ownership, possibly gifting to children or using a trust. An ILIT must be active three years before death, requires expert legal help, and costs about 2500 dollars or more.
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