People with large estates in Georgia might want to investigate the potential usefulness of life insurance within an estate planning strategy. A life insurance policy could provide cash soon after the benefactor’s passing to assist heirs with near-term estate administration expenses. Even heirs of a wealthy individual might not have the resources on hand to meet immediate expenses like funeral costs, probate court fees and estate taxes. Life insurance relieves heirs of this burden and prevents the rushed sale of valuable assets at a discount.
Life insurance policies generally pay beneficiaries, which could be people or trusts, soon after the death of the policyholder. This money could cover the many expenses that arise, such as medical bills from end-of-life care, other debts and fees for professionals such as accountants or attorneys. Some estates might impose federal or local tax bills on heirs that are usually due in the first nine months after receiving an inheritance.
The cash from life insurance could also supply settlements for heirs who need to equalize the allocation of assets. This situation could arise when heirs receive real estate jointly. They might choose to keep the property in the hands of one owner while distributing equalizing payments of cash to the other heirs. Similarly, an estate that includes a business might need to provide an heir with cash to buy business assets or meet operational expenses during a transition to new ownership or management.
A person concerned about the expenses heirs could face may discuss strategies like life insurance with an attorney knowledgeable about estate administration and probate. Legal counsel could research possible tax issues and suggest ideas for limiting financial hassles for heirs. Personalized legal advice could allow a person to anticipate and avoid estate disputes and unexpected expenses.