Second To Die Life Insurance for Inheritance Tax Protection
If you have a large estate and you are married, at the second death, your heirs may discover that they could lose between federal and state inheritance taxes 40% to 50% of your lifetime assets. A second-to-die life insurance policy, held by an Irrevocable Life Insurance Trust, offers a tax-free way to pay pennies on the dollar and eliminate your family’s tax liability. Life insurance held in an Irrevocable Trust is an economical and completely tax-free tool that will protect your other assets and provide instant cash without the need for a forced sale of other assets to satisfy the tax man. With few exceptions, federal and state inheritance taxes are due nine months after the death of the second spouse.