Estate planning professionals often contend with ambiguities. A plan may need to be modified in the future when some development in family life occurs – and there are some estate planning tools that may help to provide that kind of flexibility.
You may think of life insurance in very simple terms: you buy a policy so that your loved ones will have some financial assistance when you die. Its functionality doesn’t end there. If it looks like your accumulated wealth will be subject to estate taxes someday, life insurance may be a very useful tool for you. In fact, you might call life insurance the “Swiss army knife” of estate planning, especially when it is used in conjunction with trusts.