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LIFE INSURANCE TRUST
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What it is:
- Life insurance within a trust to provide
funds to pay estate taxes so that the life
death benefits themselves are not taxed in
the estate
How it works:
Advantages:
- Provides tax free cash to the estate to pay
taxes
- Prevents life insurance proceeds from being
included in the taxable estate
- Pays estate taxes at a discount of "pennies
on the dollar" using life insurance
death benefits
CONCEPTS INDEX |
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