Ben franklin on FIdelity Life Insurance

Ben Franklin said that in this world nothing is certain but death and taxes. Well, one product sits at the intersection of both—life insurance. It may not help you cheat death, but it may help manage taxes. There are certain estate planning steps we should all take, including the creation of a will and a health care proxy. But if you have enough wealth that you expect your estate to be taxed—at either the state or federal level—you may want to consider more advanced strategies, including using life insurance in a trust. Moreover, given the outlook for estate planning tax law, this is a strategy you may want to explore before the end of the year. Life insurance—typically in the form of a universal life or whole life policy—can help families provide funding to pay estate taxes and provide other benefits for protecting wealth. “You may want to look at an irrevocable life insurance trust (ILIT) as an advanced planning technique that can offer a variety of benefits,” says J. Daniel Murphy, director of estate planning at Fidelity. “It’s a good way to provide a source of ready cash for heirs to pay estate taxes on illiquid assets, such as property or businesses; as part of a charitable giving strategy; or to allow wealth to pass to your heirs outside your estate.”