People worked so hard in order to give their family especially their children a secure and comfortable life. If you have worked all your life to earn the wealth that you have now, then you would want your family and children to get these wealth without the need to pay estate and income tax at the same time. Paying all of these taxes will cut your wealth so as much as possible you need to try to avoid these taxes so you can fully transfer your wealth to your next generation.
There is an easy way or you to prepare for the future of your heirs through life insurance. In the past years insurance has been on the bad rap because it has been connected to fraudulent companies, but in reality having a life insurance is your best option for you to transfer all your wealth to your family and children without them paying any kind of taxes. You can now leave all your wealth to your beneficiary tax free. There are different ways on how you can use life insurance for better estate planning.
- By preparing for your death to can ensure you that your heirs will receive the amount of wealth that they deserve. It is normal for people to avoid talking about death because this is something that many people are afraid to face. Death is something that everyone will face sooner or later in life. No one can tell when you will face this end point of your life so it is better if you are prepared. If you really love your families and children, then you will think what their life would be if you are not there for them. By having life insurance, then it can void all financial difficulty that they will face after your death. Your loves ones will receive the face value of your policy without paying anything for taxes.
- Life insurance is no doubt a good investment if you are going to deal with reliable and reputable life insurance provider. Of course, if you are going to put all your wealth to life insurance you want to make sure that it is in good hands. The first thing that you need to do is to research for life insurance company that has been in the business for years because old life insurance companies means stability. If you only know how much these taxes can cut to your wealth, then you will surely choose to invest in life insurance so your heirs will receive the money in full. It is best if you will read online reviews about different life insurance providers so you can gain information about different life insurance.
Juvenile Life Insurance for Transferring Wealth
This life insurance is another option for people who want to protect that wealth that their family will receive in case something wrong happens to them. This is a flexible life insurance that you can give to your children by providing them lifetime insurance coverage that is tax free. You can give annual contribution as gift to your children through a custodial account with annual gift tax exclusion.Minors are not allowed to have their own life insurance policy so an adult usually the parent is appointed to handle the policy and make use of the funds for the advantage of the child under the UGMA or Uniform Gifts to Minors Act until the child reaches the age of 18 or 21 years old when he or she can make decisions on their own. There is no better way for you to generously give what your family and children deserve than to invest in tax free life insurance. Gift for juvenile life insurance will guarantee a legacy that will benefit your generations to come. Future proceeds of the policy are tax free and this will be received by your beneficiaries.
However, parents and grandparents should be aware of the GST or the generation skipping tax. This tax was established by the government to avoid any loophole through wealth transfer tax free to all related individuals that is more than one generation. This is new tax policy will be imposed even if a life insurance is left under a trust for a grandchild. For instance, the grandparent left a trust to their child for lifetime and some to their grandchildren. The part that is left for the grandchild will be subject to the GST tax.
Life insurance for Elderly and their families
Maybe you are thinking why an elderly should opt for life insurance if they are just waiting for their time to leave. Being at your golden years does not exempt you to responsibilities. In reality you cannot just picture a life sitting on a rocking chair and reading your favorite book. This is an ideal scene, but it does not always happen in reality. As technology go further there are a lot of means for an elderly to expand their life, live longer and become health even at their golden years so you need to be prepared for this.
Life nowadays is very unpredictable and your children might need your help and support in case they lose their job. There are times when younger generation still depend on older generation for their support. They can move in to your custody because they have lost their home because of foreclosure and this is another issue that you need to face as an older individual.
Aside from possibility of helping your children, you also need to prepare for your funeral expenses. An average US funeral can cost $8,000 and some can even cost a lot more than that. If you do not want to leave debts to your children after you have left the world, then you should invest in good life insurance that can pay all your funeral expenses plus you can also leave something for your children. If you have received your retirement money, then you can invest it in life insurance for your future plan as an elderly individual.
Life insurance is the best and most dependable investment that you can get for your family and children. It is not fair to let all taxes get the money that is supposed to be for your children.
