Life Insurance & Estate Planning financial information

Life Insurance & Estate Planning

Right after you pass away, your family has an immediate need for money. Life insurance pays your beneficiaries directly, quickly, and most of the time, income tax free. While many clients come to us thinking they no longer need life insurance in retirement, they are ignoring their surviving spouse (if married), funeral costs, and estate settlement costs.

Estate planning, especially estate planning documents, such as Wills and Power of Attorneys, are regarded as something only needed when you are younger and working, with children and a mortgage.

The ultimate goal of both life insurance and estate planning is to make sure your family and loved ones are taken care of, at least financially, after you pass. They are just as important in retirement as they are during your working years.

Questions we can answer

Life Insurance Quote

Cardinal can prepare a complimentary life insurance quote from several companies. Call, text, email, or complete the form below with your age, gender, zip code, smoker status, and a bit about your health; we will send you a quote for $25,000 whole life. We represent many insurance companies and will write you a policy that suits your budget and needs.

Cardinal Lessons on Life Insurance & Estate Planning

Federal Estate Tax – 2026 Tax Increase/Sunset

Welcome to Cardinal Advisors! Today, we're diving into a crucial topic for anyone with substantial assets: the federal estate tax and what's changing in 2026. Join us as we unpack the implications of the Tax Cuts and Jobs Act, set to revert the estate tax exclusion to $7 million. We'll explain who needs to pay attention to these changes and share potential solutions. Click play to learn more!

Beneficiary Restricted Payout – Middle Class Trust

In this video we investigate a powerful strategy: the beneficiary-restricted payout, often referred to as the middle-class trust. This method allows you to maintain control over your assets beyond your lifetime, ensuring they're managed responsibly and efficiently. Watch our video to see us introduce a customizable beneficiary form that allows you to specify how funds are distributed posthumously.

See-Through Trust for IRA Beneficiaries

Welcome to Today's Cardinal lesson on see-through trusts for IRA beneficiaries—a crucial topic for anyone considering estate planning with IRAs. If you're an IRA owner looking to leave your assets to loved ones through a trust, you'll need to navigate complex rules to ensure tax efficiency and proper distribution. In this video, we tackle why trusts and IRAs often don't mix well, particularly while the IRA owner is alive. Join us as we unravel the intricacies of see-through trusts—essential tools that allow IRA beneficiaries to receive distributions over their lifetimes, thus preserving tax benefits.

Estate Planning – Irrevocable Life Insurance Trust (ILIT)

Welcome to our channel! Today, we're diving into estate planning and discussing how life insurance can help lower or even pay your estate tax bill. Specifically, we'll be exploring the concept of an Irrevocable Life Insurance Trust (ILIT).

Why Estate Planning?

In today's enlightening episode, we consider the critical topic of Estate Planning and its undeniable necessity in financial planning. With the expertise of Hans Scheil and the special insights from Tom, we aim to shed light on why preparing for the future is not just beneficial but essential for everyone. Whether you're a high-profile celebrity or an average individual, the aftermath of not having an estate plan can be chaotic and stressful for your loved ones.

Estate and Inheritance Tax Federal & State

Welcome to today's essential lesson on estate planning, where we talk through the complexities of estate and inheritance taxes. In this video we shed light on the importance of being proactive in your estate planning, regardless of the size of your estate. Watch our video to learn more!

7 Worries – Retirement Planning

Welcome to our special video where we explore the essence of what we do at Cardinal. Our journey on YouTube started somewhat accidentally, but it's blossomed into a thriving community. Today, we focus on the core of our mission: addressing the seven critical worries in retirement. These worries aren't just about what keeps you up at night; they're about making informed decisions in pivotal areas of your retirement planning, often in your 60s, but sometimes earlier or later.

Tax Proof Your IRA/401k

Welcome to today's Cardinal lesson where we delve into innovative strategies for tax-proofing your IRA/401K, focusing on individuals in their 60s and beyond. Whether you're approaching minimum distributions or already there, this video is packed with valuable insights.

Estate Planning for the Surviving Spouse

Are you in your 50s, 60s, or 70s and planning for retirement with your spouse? One of the harsh realities to consider is that one spouse is likely to outlive the other. How do you make sure the survivor is financially secure? Tune in as we delve into estate planning for the surviving spouse with experts Hans and Tom. If you have any questions or scenarios you would like us to cover in future videos, please leave a comment below. Your feedback is important to us!

Retirees Running Out of Money Late in Life

In today's episode, Tom and I dive deep into what many consider the greatest retirement fear: running out of money. It's the elephant in the room that many of our clients are hesitant to address initially, but it's a fear that dictates their behaviors, decisions, and overall retirement planning. Remember, the right knowledge can pave the path to a stress-free retirement. #RetirementPlanning #FinancialSecurity #AvoidingRetirementPitfalls

Special Needs Trust (SNT) Person With Disability (PWD)

In this video, we explore the crucial topic of Special Needs Trusts. Often overlooked, these trusts are vital for providing security and care for adult children with disabilities once their parents are unable to provide it. This is not a guide to set up a Special Needs Trust yourself; instead, we want to highlight the importance of professional help in these circumstances and share enough knowledge to get you involved in the process. Our discussion covers the role of attorneys, accountants, and life insurance in setting up these trusts, along with potential pitfalls. Whether you are a parent or know someone in this situation, this video is an essential watch.

IRA/401k=Lousy Estate Planning Strategy

This video is about your estate planning and the potential issues you may face if you have a large amount of money in your IRA or 401K. The video emphasizes that many individuals in their 60s or 70s have not paid taxes on their retirement savings yet, as they by default let it accumulate tax-deferred until they reach the age for Required Minimum Distributions RMDs. However, this passive strategy can lead to problems when passing the money onto their children, as it will be heavily taxed and difficult for their adult children to access without paying a lot of taxes. The video introduces three strategies to address this issue: Roth conversions, using life insurance policies paid from distributions now, and taking distributions for personal enjoyment or gifts now while still alive. The presenters stress the importance of having a plan for retirement savings and encourage viewers to seek professional advice to determine the best strategy for their individual circumstances. Tax rates may increase in the future, making it advantageous to take action while tax rates are relatively low.

The Cardinal Guide To: Life Insurance & Estate Planning

Listen to learn:

There are different types of life insurance policies for retired people. Some have ongoing premiums while others can be paid all at once with a lump sum. There are even policies that allow you to use some of the life insurance benefit early if you need long term care.

Most people in retirement should have at least $25,000 of life insurance. Life insurance money is paid out swiftly to your beneficiaries. Payouts from your estate can take months or years. A small amount of life insurance allows them to quickly pay immediate expenses without having to go through the probate court.

Updating your life insurance beneficiary designations regularly is important. A designated beneficiary trumps your Will with benefits going straight to the named beneficiary.

Married couples who leave the entirety of their estate to each other need to consider who the ultimate beneficiaries are after the second spouse dies, especially if they are in a second marriages and have stepchildren. We have many clients who purchase separate life insurance policies naming specific children and stepchildren as beneficiaries.

When the first spouse passes, the smaller Social Security check stops. Life insurance is used to replace the lost income for the surviving spouse.

You need at least four legal documents prepared by an attorney knowledgeable about elder law: (1) a will, (2) a health-care power of attorney, (3) a financial power of attorney, and (4) a HIPAA release. These documents will instruct the court how your family is cared for after you pass, as well as give your family legal authority to care for you, in the way you want, while you are living.

Federal estate taxes likely do not apply unless your estate is worth more than $11.7 million ($22.4 million for couples) in 2021. The step up in basis for capital assets at death in calculating capital gains taxes for heirs is the more relevant issue for middle-class taxpayers.