Life insurance placed in an Irrevocable Life Insurance Trust (ILIT) can replace the value of assets given to charity. Life insurance can be purchased to match the amount given to specific charities, to educational accounts, or as gifts to individuals during your lifetime.

When done correctly and advisedly, life insurance and charitable gifting can be a pleasant addition to your estate plan. Consult with your estate planning advisor, or call the Legacy Lawyer at (858) 740-4370 to discuss how to set up an ILIT or charitable trust.

Often, a person or couple will delay buying life insurance until they feel they can better afford it. However, that’s not wise. The older you get, the more expensive new life insurance policies become and the less insurable you become. At some point, life insurance will become unavailable to you, either due to age or to a medical condition. The best time to buy life insurance is while you are relatively young and healthy.

Why to buy life insurance? As a tool in estate planning, life insurance can:

1. Create an estate for your spouse or children.
2. Provide cash needed to settle your estate.
3. Allow you to give to charity without depleting your estate.
4. Cover estate tax expenses.