Conserve your cash. Don’t write any checks for the life insurance you need. Complicated estate planning, estate preservation, and estate taxes can be easier with the cash from life insurance.

BY THOMAS J. HANSEN

Well, there are many "moving parts" that must work in synergy to have the most effective estate-preserving plan. Here are just a few of the many considerations:

  • The appreciation of the estate's assets.

  • The estate's liabilities.

  • Tax deductions and credits.

  • Trusts.

  • Insurance.

  • Legal entities, partnerships, incorporation, and LLCs.

  • Proper accounting.

  • Legal agreements.

  • How the taxes will be paid.

  • Financing.

  • Unified credits used.

  • One's state residency.

  • If asset liquidations will be necessary.

  • How much of the estate can be preserved for the beneficiaries.

  • The beneficiaries' ages and health.

  • Estate administration expenses.

  • And the list of important considerations goes on and on.

If you are healthy, have at least $500,000 annual income, and at least $10,000,000 in net assets, you can obtain large life insurance coverage to pay your estate taxes ... without writing any checks.

For a discussion of a more comprehensive plan for larger estate funding and tax planning, call me at (847) 292-1800.