| Protective life insurance has been a major | | | | specified you or your estate as the primary |
| attachment in most basic estate planning and | | | | beneficiaries, then it is likely that you have exposed |
| development and the majority can offer a | | | | your policy's death benefit funds to your estate |
| non-taxable income death benefit, which can go | | | | taxes. |
| beyond the amount of premiums being paid by a | | | | In most cases, whenever an estate tax is concerned, |
| client. | | | | a protective life insurance policy is normally best and |
| Still, a lot of protective life insurance payments and | | | | ideal, especially if it's owned by someone else. |
| funds are mostly wasted if the designations for | | | | However, you may also petition a binding trust to be |
| ownership and beneficiaries aren't properly designed | | | | the primary owner and beneficiary of your protective |
| or structured. | | | | life insurance policy. Also, you may assign your |
| Due to the established federal and state taxes, taxes | | | | children who are above 18 years old to be included in |
| might be obligatory on all properties that you own at | | | | the list of your policy's beneficiaries. |
| the time of your death. This specific tax must be | | | | Either way, it can help you avoid the inclusion of your |
| paid from your property estate. This tax will not be | | | | policy funds or contribution in your property estate. |
| attached if the value of your estates is less than | | | | At the same time, third-party policy owners may also |
| your estate tax exemption amount. If you have a | | | | lend such contributions to your estate to provide you |
| protective life insurance policy, or your estate and | | | | with cash that will satisfy and lessen your property |
| yourself are included in your premium as beneficiaries, | | | | tax liabilities. In cases where you enlist your spouse |
| then your policy death benefits will possibly increase | | | | as the owner of a policy on your protective life |
| your estate value. | | | | insurance, make sure that, if your spouse meets an |
| However, if you have already included your | | | | untimely death, you will not end up owning the |
| protective life insurance death benefit funds and your | | | | insurance policy that is acquired through a living trust |
| estate property's value is still less than the state tax | | | | or by a provision that is stated in your spouse's last |
| exempt amount, then there will be no federal estate | | | | will and testament. |
| that will be assessed. Hence, you insurance's death | | | | Even if there are cases where the owner of the |
| benefit funds can easily be directed to any of your | | | | policy is a third party, if the beneficiary passes away |
| beneficiaries and will not be needed to pay all the | | | | before the insured, the contributions may be directly |
| estate tax liabilities. | | | | paid to your estate tax. Always remember that a |
| If you own a particular property that exceeds your | | | | gift of protective life insurance to any third party |
| specified estate tax exemption amount, then you | | | | may be accompanied with a gift of tax |
| may have an estate that is taxable. If you are under | | | | consequences. |
| a protective life insurance policy, or if you have | | | | |