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Paying Premiums for Life Insurance Policies in Trusts

An overview of the funding methods available.

There are numerous ways to fund premium payments on life insurance when the policy is held in trust. They include using an existing funded trust and making annual exclusion gifts. For larger premium payments, private finance, split dollar and borrowing from a commercial lender are options. They all have pros and cons. Here’s an analysis of the techniques.

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TAGS: Insurance
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