Life insurance can be a tremendous liquidity tool to pay estate taxes. Life insurance policies provide cash to pay estate taxes within a short period of time, and if structured properly, can be a very tax-efficient and tax-advantaged asset. Most life insurance policies are less expensive than any other method to pay estate taxes and can prevent other valuable assets from having to be liquidated.
Discounts, fees, commissions
Graph depicts potential costs per million dollars of estate tax. Life insurance insurance figure based of healthy male, age 54.
Life Insurance in Estate Planning
Create or increase the size of an estate.
Fund buy-sell agreement.
Insure key person.
Estate liquidity to pay debts, administration, and taxes.