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How can you prevent your estate from getting into the hands of people you don't even know?
Don't let the government be the biggest heir to your estate. In addition to nearly half of your legacy being extracted for estate taxes, additional taxes may apply, such as the 55% generation-skipping tax if you leave assets to your grandchildren
What can you do about it?
Talk to an attorney about planning techniques that can reduce estate taxes that don't necessarily require you to reduce the size of your estate by giving away your assets to children or grandchildren during your lifetime - something that you may not want to do.
Keep your assets, give away your taxes!
Although taxes are still due, rather than giving away your assets, understanding the economics of life insurance lets you keep your assets and estate intact. Our plan describes how life insurance can be used to cover your estate taxes. How? By creating a source of funds to help pay estate tax liabilities through affordable premium payments in the form of a gift to an Irrevocable Life Insurance Trust. Often, the premium payments are only 2-5% of your total estate tax per year.
Understanding the Economics of Life Insurance
Insurance on your (and/or your spouse's) life can be set up to provide your beneficiaries (usually outside probate or creditor's claims):
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NO federal estate tax
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NO state inheritance
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NO federal or state income tax
Although a trust is not necessary to get all of the tax benefits, it is usually recommended that you have an attorney set up a trust to own the insurance policy and distribute the proceeds.
Let us help you. Although nearly all products within Lincoln Life's portfolio can meet estate tax needs, consider the following products to supplement your plan:
Learn about the Estate Tax Repeal
LM0112-0484
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