Why Placing Life Insurance Policies in Trust Can Save You Money on Inheritance Tax
Thursday, 15 August 2024, 10:24
Understanding Inheritance Tax Exposure
Many estates face inheritance tax due to insufficient planning. Recent studies indicate that approximately 25% of estates subject to this tax have life insurance policies that could have been secured from tax implications.
The Solution: Trusts
- Placing life insurance policies in trust keeps them out of the estate, effectively reducing tax liabilities.
- This strategy ensures that beneficiaries receive the full policy proceeds.
Conclusion
Incorporating trusts into your estate planning is an essential step to protect your assets from inheritance tax. Not only does this safeguard your family's financial future, but it also enhances your overall estate management strategy.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.