Colva Insurance Services

At times individuals aren't aware that the internal revenue service can include proceeds from their life insurance policies in their estates for tax purposes when they die. But there are ways around it.  One of the best options is to have an Irrevocable Life Insurance Trust also widely known as ILIT. So, what is ILIT? An irrevocable life insurance trust is a type of irrevocable trust that's specifically designed to set up to own a life insurance policy. You can transfer ownership of an existing policy to the ILIT after it's been formed, or the trust can purchase the policy directly. You can't serve as trustee of the trust for 2 reasons. First, the trust must be irrevocable, which means that you must fund it and step aside. You abandon any rights to make changes to it or to dissolve it. And second, acting as trustee will give you something called "incidents of ownership" because you would preserve the control over the policy. But your spouse, your adult c...

High Net Worth individuals tend to face unique challenges when it comes to insurance of their assets. They are likely to develop a preference for different types of insurance products. The fact is that affluent families require complicated risk management service but may have comparatively lesser obvious needs for an insurance coverage.The actual risk lies in over-insuring for minor threats while underinsuring for major threats. The high net worth insurance policy focuses on smoothing the relationship between the balancing the threat due to major and minor risks and the coverage. How can they be underinsured?   High net worth individuals(HNWI) tend to be underinsured and some of their valuable possessions may be at a risk. Often affluent individuals have expensive hobbies and habits like art, racehorses, wine collections, and yachts. These may be easy to gather but equally prone for not being insured. Even if these possessions are insured, the ow...