3 MORE Ways Life Insurance Can Help with Estate Planning: Part 2

  • Estate Planning
3 more ways life insurance can help with estate planning | estate and probate legal group

Welcome to part 2 of our article, explaining 3 more ways life insurance can help with estate planning. Life insurance can be some financial protection for your loved ones after you’re gone. And when properly planned for, life insurance can be a powerful tool in your estate plan. You can set it up as more than a lump payout to your estate. Read here if you missed part 1 of this blog.

How Life Insurance Can Help With Estate Planning

An estate plan is not only a will or trust. It can help ensure you live comfortably in your final years, and care for your family after you’re gone. And along the same idea, your family can use your life insurance for more than just your funeral costs.

In the previous article, we explained that your loved ones can use your life insurance in the following ways:

  • Final expenses
  • Estate equalization
  • Special needs trust

Now let’s look at 3 more ways life insurance can help with estate planning:

  1. Business Buyout
    If you own or co-own a business, it can be difficult to keep it running after you’ve passed away. Your family can use the life insurance money to buy out the partners and continue running your family business.
  2. Avoid probate
    Life insurance money is not distributed through your will or the probate court. You name the beneficiaries on your life insurance policy, and the money can go directly to them.
  3. Estate taxes
    You want to do what is best for your loved ones and leave your assets to them, but they may have to pay final taxes on your estate. Your family can use the life insurance money to offset those taxes.

Establishing your estate plan is not something you should do on your own. When you work with an experienced estate planning attorney, you can make the best possible decisions about leaving your assets to your loved ones without costing them more money. We can help customize an estate plan specific to you and your situation.

Yes, leaving a life insurance policy to your loved ones is a generous gift. But we can help you utilize that gift in the best possible manner.

Oak Brook Estate Planning Attorney

Do you have questions about setting up an estate plan in Illinois? Contact us today at the Estate & Probate Legal Group at 630-864-5835. Our experienced attorneys understand applicable laws and can advise you on the best options to protect your loved ones.

Areas we serve: Cook, DuPage, Kane, Lake and Will counties.