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Life Insurance

How does a life insurance trust work?

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2007-11-09 20:35:20
2007-11-09 20:35:20

A life insurance trust is used to remove the assets and death benefit of the life insurance policy out of the insured's estate for estate tax purposes. If the insured were to remain the owner of the policy, the policy procedes would be estate taxable at the time of death. This is a non-issue if your assets are less the the allowable estate tax limits.

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