When does it make sense for a trust to own your life insurance policy?
August 30, 2021 by https://www.chase.com/personal/investments/learning-and-insights/article/when-does-it-make-sense-for-a-trust-to-own-your-life-insurance-policy
Estate planners and insurance professionals often recommend that people create a separate trust to own life insurance policies. Whether a life insurance trust makes sense for you depends on your goals and a number of other factors.
Why own life insurance in a trust?
If you own a life insurance policy, you probably know that the beneficiaries you’ve named to receive the insurance proceeds when you pass away get that money income tax-free.