Unfortunately, planning your estate can be a lengthy and complex process because there are many options that should be taken into consideration when picking the best choice for you and your family. Not only can you plan your estate for the future, but you can also use it to your benefit while alive. One thing many people don’t realize is that they can utilize their life insurance during this process. The following blog explores what you must know about this option and how a Washtenaw County estate planning attorney can help you explore your options.
How Can I Utilize Life Insurance During Estate Planning?
Generally, once you’ve acquired assets like a home or have started a family, you should consider how your life insurance policy can be used for estate planning. If you do not already have a life insurance policy, it may be beneficial to invest sooner rather than later, as the cost may increase with age.
One of the most common ways to use a life insurance policy in your estate plan is to use the death benefits to help cover costs upon your passing. Generally, you can use any payout to cover these expenses, but you may be able to use these funds to pay for funeral expenses, any debts that have not been paid, and outstanding taxes.
You may also want to use your life insurance policy to help fund assets like a family business. If your family shows interest in continuing the business, the funds from your life insurance policy can help make this a reality.
Finally, you may use it to make your estate more fair for beneficiaries. For example, if one child wants to sell an inherited piece of property upon your passing, the other may want to keep it but can’t afford to. If your life insurance policy is equal to the value of the property, you can leave one child the home and the other the life insurance policy to make their inheritance more equal.
Can an Attorney Assist Me?
If you’re looking to start planning your estate, it’s in your best interest to enlist the assistance of an experienced estate planning attorney. Unfortunately, there are many complexities that accompany this process, and making a mistake can leave your heirs without the protection you planned.
At Collis, Griffor & Hendra, our dedicated legal team has the experience you need to guide you through the complexities of this process. We understand that ensuring your estate is in order is crucial to your peace of mind. That’s why we’re ready to help guide you through this process to ensure your legacy is protected and you can provide for your loved ones upon your passing. Contact us today to learn how we can assist you.
