When it comes to estate planning, there is the belief that one must have significant assets. As an estate planning lawyer in Cranberry Township, I’m here to tell you that this simply isn’t the case. In fact, life insurance plays a crucial role in doing estate planning, even if your existing assets are modest.
How Life Insurance Can ‘Fund’ Your Estate Plan
If your primary concern is providing for your family after your passing, a life insurance policy may be an excellent tool to accomplish this. The death benefit from a life insurance policy can provide immediate financial support to your loved ones. In turn, this funding can help to cover expenses, and maintain the quality of life your loved ones deserve.
The benefits of having life insurance include being able to “fund” your estate plan as follows:
- Covering Estate Taxes: If your estate is large enough to incur estate taxes, a life insurance policy can be used to cover taxes. This can preserve the value of your estate for your heirs.
- Equalizing Inheritances: You may have multiple beneficiaries and want to ensure that they receive equal inheritances. Having a life insurance policy can help to balance things out. This is especially helpful when some of the assets (such as a family business) are difficult to divide.
- Creating a Legacy: Maybe you want to leave a legacy to a favorite charity or cause, in which case a life insurance policy can be an effective way to accomplish this.
Remember, your employer-provided life insurance plan may not be enough to meet your goals. Having additional policies, including term life or whole life insurance, can be tailored to accommodate your specific needs and circumstances.
Work with Us
Doing estate planning, involves more than just writing a Will. Creating a comprehensive plan will protect your loved ones, while ensuring that your wishes are honored after your death. We at Sechler Law Firm can help you understand all the options available to you to help you achieve your goals.
Remember, it’s never too early to start planning for the future. Reach out to our office today and let’s create a plan that gives you peace of mind and secures your legacy.
Simply call 724 546 4227 to schedule an appointment.