Mullen and Iannarone, P.C.
Serving the legal needs of corporations, individuals and
families of Suffolk County since 1972

The estate planning benefits of life insurance

Those who are turning 55 in the near future may still be trying to find solutions to both current and long-term financial issues. However, New Yorkers who are attempting to create an estate plan may want to make a life insurance policy a part of that plan. Perhaps the most important benefit of a life insurance policy is that it can provide cash at the time of a person's death.

This can make it easier for surviving family members to pay final expenses such as for a funeral. The money a policy provides could also be helpful for paying medical or other outstanding debts at the time of a person's death. It is not uncommon for individuals to want to divide assets such as a business to multiple children upon their death. However, dividing the business may be tricky based on the needs and goals of the beneficiaries.

Therefore, it may be possible to give the actual asset to one beneficiary while giving cash to the other. The money from a life insurance policy could also be used to keep a company running or ensure that surviving family members can buy the company from the estate itself. In addition to providing liquidity, money from a life insurance policy may be tax-free if the policy is placed in a trust.

The use of wills, trusts and other estate planning tools may allow a person to preserve his or her legacy. Furthermore, an estate owner could provide financial security for beneficiaries today and in the future. In some cases, trusts or beneficiary designations could keep assets out of an estate and away from probate. An attorney may work with an individual to create an estate plan that meets that person's needs.

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