As members of the wealthiest generation in American history, baby boomers in Georgia understandably want to pass some of their hard-earned assets along to certain heirs. Boomers are also living longer, which means they're often seeking effective long-term estate management and planning solutions. Luckily, there are several life insurance products that can meet many of the needs of a generation whose youngest members are now in their mid-50s.
Life insurance can play an especially important role in estate planning when there is a need to access cash, or liquidity, after death. Needs of this nature typically include final expenses involving unpaid debts, funeral costs and outstanding medical obligations as well as probating and administering fees. Federal and state estate taxes that would otherwise take away from assets meant to be passed along to loved ones may also be taken care of with life insurance payouts.
Baby boomers in Georgia with hard-to-divide assets such as real estate or a family business that would likely go to only certain heirs may prefer to use life insurance benefits to provide equal inheritance to heirs that might otherwise be left out. A similar concept applies to cash that may be given to heirs so that desired charitable donations can be made to help reduce the size of an estate tax bill. Gaining cash to keep an inherited business operating as ownership or management changes are made and avoiding forced liquidation costs related to the sale of estate assets are some additional ways that boomers' beneficiaries may use insurance payouts.
Income tax usually doesn't apply to life insurance death benefits. An attorney drafting estate planning documents may be able to help boomer's heirs avoid estate taxes on life insurance payouts by setting up a trust that keeps life insurance separate from the estate. During the estate planning phase, a lawyer may recommend that a boomer do an inventory of available assets and liabilities to establish goals and objectives before getting started. An estate plan might also involve tax-free donations made during a boomer's lifetime, guardianship selections and the appointing individuals to make certain health or financial decisions.