Life Insurance and Life Insurance Trusts: Basics and Beyond
Probate and Property, January/February 2002, Volume 16, Number 1
By Bradley E.S. Fogel
After bypass trusts, life insurance trusts are probably the most frequently used estate planning device. The reason for their popularity is simple: enormous transfer tax savings. Indeed, by excluding assets from the insured’s estate, a life insurance trust can more than double the amount of policy proceeds payable to heirs.