Life Insurance for Estate Planning
How is life insurance used with a charitable remainder trust?
A charitable remainder trust (CRT) provides income during life and passes the remainder to charity at death. Life insurance can be used to replace the wealth transferred to charity. The death benefit from a life insurance policy passes to heirs, replacing the wealth that went to charity.
Key Points
- CRT: provides income during life, passes remainder to charity
- Life insurance: replaces the wealth transferred to charity
- Death benefit: passes to heirs, replacing the charitable gift
- Wealth replacement trust: ILIT funded with life insurance
- An independent agent can help you design a CRT and wealth replacement strategy