Even the youngest members of Georgia’s baby boomer generation are now in their 50s. It’s during this stage of life that many people begin to think about financial and estate plans. Life insurance products are one solution that’s often overlooked. Taking some type of action with estate arrangements is an important step commonly recommended for the boomer generation since individuals within this age range tend to have significant assets they wish to pass along to future generations.
Many estate planning needs can be met with life insurance. It’s also an appealing option because liquidity — or cash — for many of the expenses that arise following the passing of a loved one will be available fairly quickly. Typical expenses include unpaid debts and funeral costs, fees for attorneys appraisers and estate taxes. Life insurance can also make it easier to for surviving owners of a business to get access to cash that might be needed to either purchase the company from a decedent’s estate or keep it operating.
Boomers in Georgia will appreciate the fact that life insurance death benefits are often not subject to taxes. One way to avoid a payout tax is to set up a trust that specifically makes life insurance separate from the estate. Life insurance may also prevent some of the potential pitfalls associated with selling certain estate assets to get cash that’s immediately needed.
Oftentimes, death benefits associated with a life insurance policy are greater than the premiums, which is another way surviving family members may be able to cover initial estate expenses. An attorney might recommend this approach to estate planning for clients with larger estates or significant assets. In addition to providing personalized advice for anyone looking to set up an appropriate asset management plan, a lawyer can help with the estate planning process, whether it involves trusts, wills, a health care directive or life insurance.