Before you ask yourself if you should, the first question to ask is if you can. The only reason for one to have an irrevocable life insurance trust in Florida is if they are insured by one or more life insurance policies.
Your local Deer Field Beach Wills and Trusts lawyer can tell you, the Florida Irrevocable Trust works the same as most other trusts. It is a contract is between the trust creator (“grantor”) and a trustee to administer the property, or in this case, Florida insurance contract for the benefit of some named beneficiaries.
Advantages of irrevocable life insurance trusts in Florida:
- When dealing with estate taxes in Florida, a life insurance policy is included as part of thetaxable estate.
- As a result, one of the most common reasons to create an Irrevocable Life Insurance Trust in Florida is avoidance of estate tax.
- An Irrevocable Trust that is properly creating in Florida is set up with the death benefits paid to the Trust, thereby excluding the proceeds being included in the taxable estate of the insured.
- Also, your local West Palm Beach trusts and estate planning attorney can structure theIrrevocable Trust for the insured’s surviving spouse. This will allow the exclusion of the proceeds from the taxable estate too.
Disadvantages of irrevocable life insurance trusts in Florida:
- It is important to remember, and your trusted Broward County probabte litigation attorney will telly you, that an irrevocable trust means there can be no modifications, rescissions, or amendments once the trust is created.
- After the grantor funds or transfers the property to the trust, the grantor cannot modify or amend the terms of the trust or reclaim ownership of the vested property.
- As a result, a grantor must fully understand his or her decision prior to creating anIrrevocable Life Insurance Trust in Florida.
Have you had any experiences with Irrevocable Life Insurance Trusts in Florida? If so, leave a comment down below?
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