Irrevocable Life Insurance Trusts · Houston Estate Planning Lawyers
Benefits received from a life insurance policy upon the death of the policyholder are likely to be one of the largest single sums of money a surviving spouse or beneficiary receives in his or her lifetime. How the proceeds are protected for the surviving family members or future generations speaks volumes about the values of the family.
If you have recently received the proceeds of a significant life insurance policy, talk to an attorney at Kerr, Hendershot & Cannon about options for preserving it according to what your deceased loved one would have desired. A life insurance trust allows you to protect the principle assets from taxes on interest and earnings, while giving you options for withdrawing or distributing the money according to a very specific set of established guidelines.
A life insurance trust can be set up for covering the costs of:
- Ongoing medical expenses for a surviving spouse and other loved ones
- College tuition for children and grandchildren
- Monthly mortgage payments or annual property tax on the house
- Special needs of an incapacitated or infirm loved one
- Supporting your family's favorite religious institutions or charitable organizations
Revocable or Irrevocable Life Insurance Trust?
A revocable life insurance trust means that the estate holder maintains the right to withdraw the assets in the trust at any time, under penalty of taxes. An irrevocable trust means the money belongs to the trust and may only be distributed according to the specific terms established for the trust. Depending upon the circumstances of the distribution, assets in an irrevocable trust may be taxed as a gift tax.
20 Years of Experience Helping Individuals and Families With Estate Planning
At Kerr, Hendershot & Cannon, we never forget that every family's financial circumstances and values are unique. That's why we take the time to learn more about you, to understand what you consider important. Tax planning may be important, but it may not be more important than taking care of children and grandchildren. Our team of experienced wills and trusts lawyers understands that. We'll find a creative way to protect your life insurance proceeds while preserving the values you cherish.
We are recognized as the region's preeminent estate planning law firm. From our offices in Houston and Corpus Christi, we offer estate planning advice and representation for individuals and families throughout South Texas. Contact us to arrange a consultation with an experienced Texas life insurance trust attorney at our firm today.
