Life insurance trusts are specific types of irrevocable trusts that can effectively reduce or eliminate future estate tax obligations. At JR Phillips & Associates, PC, our Centennial life insurance trust attorneys have the experience and resources necessary to help you create a comprehensive life insurance trust that can save your loved ones a substantial amount of money, headaches and stress in the future.
How Life Insurance Trusts Work
When developing a life insurance trust, a life insurance policy is transferred into the holdings of a trust. This means that the proceeds from the policy will eventually be paid out to the trust instead of to a decedent’s estate. Through the terms of the trust, the trustmaker or grantor can:
- Choose a trustee to administer the trust (i.e., pick someone who is not a beneficiary of the life insurance policy to have control over the trust)
- Determine how the premiums will be paid
- Select beneficiaries to the policy
- Lay out terms for how the payouts from the policy will be paid to one or more beneficiaries.
In order for a life insurance trust to be legal and effective, it must meet the following basic requirements:
- The life insurance trust has to be irrevocable.
- The person who is creating the trust cannot be the trustee.
- The trust has to be in place for at least three years prior to the death of the person who is the subject of the life insurance policy.
There are a number of other considerations that can come into play when developing and administering life insurance trusts, so be sure to contact JR Phillips & Associates to ensure that:
- You create a binding, comprehensive life insurance trust.
- You and your loved needs are properly considered and protected by your life insurance trust.
Denver Life Insurance Trusts Attorneys at JR Phillips & Associates, PC
When you are ready to create a life insurance trust or you need assistance administering any type of trust, you can count on the life insurance trust lawyers at JR Phillips & Associates, PC. We provide a thoughtful approach to our clients’ estate planning, elder law and other legal needs, and we are dedicated to helping each of our clients and their families find the best solutions for them.
While this means that we provide our clients with personalized attention at every step of the process, it also means that our clients can rely on us to always be competent, caring and professional while providing them with the highest quality of estate planning legal services at affordable rates.
Our Centennial life insurance trust lawyers are skilled at using a variety of traditional and innovative approaches to develop solutions that are specifically tailored to our clients’ needs and objectives. Our goal is to help our clients efficiently navigate the complexities of the law so they can develop effective, prudent solutions that will protect them, their assets and their families in the future.
Let’s discuss your options during an initial consultation. To schedule this meeting, call us at (303) 741-2400 or email us using the contact form at the top of this page.
From our offices in Denver, we serve clients throughout the southwest and southeast Metro Area, including (but not limited to) people in Highlands Ranch, Littleton, Castle Rock, Parker, Aurora, Greenwood Village and Englewood.