Factoring Insurance into Your Estate Plan
Part of the Estate Planning For Dummies Cheat Sheet
Insurance is vital for estate planning: It helps protect your current property, things you hope to attain in the future, and the gifts you hope to leave behind. Take a look at how insurance affects your estate and what types of insurance to consider for your estate planning:
Life insurance is a critical part of your estate planning, so make sure that when you purchase a new policy or change an existing one, you look at the rest of your estate planning to get the most benefit from your life insurance.
Many estate-planning advisers concentrate on life insurance. But you need to factor in many other types of insurance, such as the liability portion of your automobile and homeowner's insurance.
Your life insurance policy may be an estate tax trap if you don't take appropriate measures, such as setting up an irrevocable life insurance trust.