Life insurance can be very helpful in estate planning. It can be used to cover prospective capital gains tax liabilities, to payout the debts of the estate or to enable a business partner to buyout for cash the interest of a deceased partner in a jointly owned business. Most commonly, however, insurance is used to enlarge an estate for the general benefit of the beneficiaries.
Note: You should ensure that you nominate your personal representative/executor as trustee for your estate as beneficiary of any general insurance policy. An insurance payout directly to a beneficiary and not via a Will does not attract the benefits or protections of a testamentary trust. |
