Happy Summer 2024!
Here are some quick updates:
We are nearing 100
Only Fee-Only podcast episodes!
Upcoming podcast guest:
Refresher on ILITs
(Irrevocable Life Insurance Trusts)
Irrevocable Life Insurance Trusts (ILITs) can be confusing......
However, they offer valuable benefits. An ILIT owns life insurance policies and removes the proceeds from your taxable estate. This means lower estate taxes and more money for your beneficiaries.
Here’s how an ILIT helps:
Removing Proceeds from Taxable Estate: An ILIT is designed to own life insurance policies. When the trust owns the policy, the death benefit is not included in the insured's taxable estate, which can reduce estate taxes.
Estate Tax Savings: By removing the life insurance proceeds from the taxable estate, an ILIT can help lower the overall estate tax burden, leaving more for the beneficiaries.
Control Over Assets: ILITs allow the grantor to specify how and when the trust assets (including life insurance proceeds) are distributed to beneficiaries, providing greater control over the distribution process.
Creditor Protection: Assets held in an ILIT are generally protected from the creditors of both the grantor and the beneficiaries, assuming the trust is structured correctly.
Covering Estate Expenses: Life insurance proceeds can provide the liquidity needed to pay for estate taxes and other expenses, preventing the need to sell other estate assets.
Replacing Donated Wealth: If part of the estate is donated to charity, the life insurance proceeds from an ILIT can replace the donated amount, ensuring that heirs are still financially secure.
Income Replacement: The life insurance policy within an ILIT can provide income replacement for beneficiaries, helping them maintain their standard of living after the insured's death.
Though ILITs can be complex, the benefits often make them worthwhile. A knowledgeable advisor can help you understand how an ILIT can fit into your estate plan and secure your legacy!
BC Portal continues to be updated!
The latest update includes updates to the P+C underwriting tab, as well as
ability to see and add notes to each policy.
Have a suggestion or something you would like to see in the future? Let us
know by putting it on our radar.
Thank you everyone for a great 2024!
We look forward to servicing everything this fall and winter in Q3/Q4!
Let us know how we can help you
and your clients with their insurance needs in 2024!