Contact Chamlin, Uliano & Walsh today to get started on your estate plan or update it to include a life insurance policy in Ocean Township, Neptune, Holmdel, Asbury Park, Red Bank, Colts Neck, Wall, Middletown, and across Ocean and Monmouth County. Call our attorneys for a consultation at (732) 440-3950 today.
Life insurance policies offer many financial benefits as a part of estate plans, but they are particularly complimentary to other estate planning tools like wills and trusts. Life insurance policies are not subject to the probate process, while wills are. This means that while it may take heirs an extensive period of time to receive their inheritance from an estate based on the directives of a will, a life insurance policy payout is much more rapid. This allows heirs to handle immediate costs associated with management of the estate, as well as funeral costs, while awaiting the completion of the probate process.
There are costs associated with anyone’s passing, whether death was foreseeable or unexpected. Some life insurance policies specifically cover a portion of or all funeral costs, so your loved ones do not need to worry whether other financial resources associated with your estate are available immediately. And because a life insurance payout is so much quicker than a settlement of an estate, unplanned financial obligations associated with your death can be handled without stress as well.
Life insurance policy payouts are generally free of income tax regulation. Whether they form part of the larger estate for which estate taxes apply depend on the manner in which they are set up and passed on — keep reading for more.
Life insurance policies can be placed under an irrevocable life insurance trust, an entity that is technically the beneficiary of the policy. When it comes time for the policy to be paid out, funds will go directly to the trust. Through an irrevocable life insurance trust, a policy payout is not considered part of one’s estate, subject to estate taxes. Beneficiaries of the trust receive their portion of the life insurance policy payout directly through the trust. An estate planning attorney is a key ally in helping you set up this trust for your beneficiaries’ benefit.
Life insurance policies exist to ensure that one’s loved ones are financially secure in the event of their passing, so it is daunting to think of a life insurance claim being denied. Your estate planning attorney can help you make sure you’re set up for success on that front, but here are some reasons a life insurance claim could be denied:
An estate planning attorney is an important member of your legacy-building process as well as an ally for your heirs in the event of your death. The lawyers at Chamlin, Uliano & Walsh are highly skilled in developing the most effective means of protecting your financial legacy and ensuring that it gets into the hands of your loved ones efficiently upon your passing. Red tape and hidden fees and issues are common in estate settlement, and an estate planning attorney at our Monmouth County law firm is here to make sure your loved ones receive the full extent of your hard-earned assets without barriers.
Our team assists with all aspects of estate planning, probate, and litigation in Monmouth Beach, Long Branch, Sea Bright, Rumson, Freehold, and throughout Monmouth County, Ocean County, and the Jersey Shore. Contact us at (732) 440-3950 to learn why we are fully equipped to address your needs and concerns and get started on securing your loved ones’ financial futures.