Role of Life Insurance in Your Estate Plan
Estate planning takes the following into consideration:
- The assets and investments that you own.
- The people you want to receive your assets.
- The needs of your surviving family.
- The expenses of settling your estate.
- The impact of taxation on your estate.
A lack of proper financial planning could result in you having a lower monthly income to live on, paying more in income tax and passing on less to your heirs or charity. It doesn’t have to be this way. By developing a financial plan that is unique to your situation, you can manage your wealth now, have enough money to retire on and provide for those who carry on when you are gone.
Life insurance is a common component of estate plans. Life insurance is a miracle of pen and ink that provides TAX FREE cash when it is needed the most.
Life insurance can be used to:
- Provide the cash to pay for the funeral and last expenses.
- Provide the capital to put in the trust to take care of loved ones.
- Provide cash as an inheritance.
- Provide a bequeath to your favorite charity.
- Provide the cash to pay the lax liability on the RRIF on the last death.
- Provide cash to pay tax liability on investments where applicable.
This can be done for mere pennies on the dollar, and allows you to maximize your monthly income while alive.