Life insurance can be used as a great tool for protecting your assets. Set up irrevocable life insurance trust, and put in money by way of gift. The insurance trust buys a permanent insurance policy (not term insurance) on your life, and builds a value. Through this mechanism you can create a structure that provides valuable protection from future claimants, for example, malpractice claimants if you are a physician. Not only does this technique protect your assets, but, if you have a spouse and children, it also caters to real family needs. Now you have a valuable asset inside a trust, which has a measure of protection as an irrevocable trust, with financial planning and valid non-asset protection reasons to do it and financial planning. Further down the line you even have relatively easy access to the money inside.
The above is a summary of a radio show on MMFN Money Matters Financial Network, on June 30, 2008 with host Gary Goldberg, of Gary Goldberg Planning Services, Inc. in Montebello, New York, and his guest Martin M. Shenkman, Esq. an estate planner in Paramus, New Jersey. Listen to the audio clip of this segment on www.laweasy.com.
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