The Power of Life Insurance in Wealth Transfer: Making a Difference for Future Generations

WITH A SIGNIFICANT CHANGE IN THE FEDERAL ESTATE TAX EXEMPTION SCHEDULED TO BECOME EFFECTING ON JANUARY 1, 2026, PLEASE CONSIDER THE FOLLOWING:

• Death proceeds are paid income tax-free to the beneficiary.
• Policies owned by an irrevocable trust are designed to avoid potential estate taxes.
• Predictable benefits mature exactly when needed.
• Cash value accumulation within the contract is tax-deferred.
• There is a stepped-up cost basis inside an irrevocable trust.
• Depending on state law, there is creditor (and predator) protection of the policy’s cash value and death benefit – the ultimate in asset protection.
• Generally, there are no probate fees on a policy’s death benefit.
• Coverage can fund “estate equalization” for multiple beneficiaries (e.g.: adult children not involved in a potentially inherited family-owned business).
• Death benefits can represent “asset replacement” should a large charitable bequest exist, thus providing comparable liquidity to loved ones.

When all is said, written, and done, the dual tax-deferred and rate of return benefits associated with a permanent life insurance policy owned by an irrevocable trust are hard to beat.

Please reach out to our agency for additional information or a customized illustration.

Our Life Insurance Expert

James P. Cahill, CLU

James is a 40-year veteran of the life insurance marketplace in the Greater Chicago area. His career has included a 22-year association as a branch manager and senior account executive with Hartford Life, earning top national office and top national account executive designations, while qualifying for award-conference level in 20 of those 22 years.

Our value proposition is a simple one.  Offer a thorough and cost-effective solution to business clients through careful analysis, consultation, and implementation.

Contact James at info@GoCGO.com. 

 This is not to be considered tax or legal advice. Please consult with the appropriate professional resources.