Call Now - Free Consultation

Free Case Evaluation

Appleton 920.843.9054
Sheboygan 920.287.0845

Green Bay 920.785.6525
Statewide 877.481.9734


Green Bay
Fox Cities

Life Insurance Trusts

Never go into a Courtroom Alone!

History of Life Insurance

In the old days, if you purchased life insurance on yourself and continued to pay the premiums on the policy, even if the policy were to be distributed to someone else, the proceeds of the policy would be included in your estate for tax purposes at your death.


In 1954, Congress eliminated this problem by enacting §2042 of the Internal Revenue Code. This section basically says that the proceeds will only be included in your estate at death if you maintain an incident of ownership over the policy.

§2042 – What it means

Treasury regulations say that you have an incident of ownership if you gain a personal benefit from the policy, if you have the power to change the beneficial ownership in the policy or its proceeds, or if you have the power to change the time or manner of enjoyment, even if you have no interest in it.

§2042 – Summary

In summary, if you purchase an insurance policy, you can prevent it from being included in your estate for tax purposes if you:

  • don’t have a beneficial interest in the policy;
  • are not the source of any premium payments;
  • and are not the owner of the policy

As a result, estate planners had to develop effective ways of planning for insurance policies.

Life Insurance Trusts

  • If a life insurance trust is properly drafted, it can avoid inclusion of the life insurance policy in the estate of the decedent. Your attorney would create in irrevocable trust and place your policies into it.
  • Placing your insurance policies into a trust is an easy way to meet the requirements of §2042

Non-tax Advantages

  • Life Insurance Trusts provide professional management of your money.
  • They provide the flexibility to meet the special needs of family members.
  • They make it more certain the money will be used in the manner that the insured feels is appropriate.
  • They provide protection against the beneficiaries’ creditors.
  • They make funds available to your estate quicker because they avoid the probate process.


  • By following these guidelines, you can transfer and purchase multiple life insurance policies, place them in trust, and the policies should pass completely outside of your estate at death.

Our Results

Find out what our trial-tested defender can achieve.

Beyond Expectations

My husband had never been in any legal trouble before and we didn’t know what to do or what the process was. Attorney Kaehne was very upfront and willing to explain every step of the way. My husband can be very skeptical when it comes to trusting people with his best interest, but Attorney Kaehne always remained professional and helpful. My husband was facing the possibility of years in prison and Attorney Kaehne was able to get the matter dismissed. He will always be our first choice!

The Outcome was Far Better than I Expected

Attorney Kaehne always communicated with me on what was going on and his plans for future court appearances. The outcome of the case was far more better than I expected and am really pleased that Chad did what he did to get this issue resolved.

Treated like Family

Amazing people as well as amazing attorneys. I was always treated like family.

Not Guilty Verdict

Attorney Corey Mehlos gave my case the upmost attention. He worked very hard and many long hours on it. I was impressed with his dedication and his understanding to my wishes. Not Guilty verdict at my jury trial. I highly recommend him.

In Good Hands

One of the best things about this firm is that they are truly advocates for you in every sense of the word. They listen, affirm, and explain everything without all the jargon that can so often times come with anything regarding the legal cases. I felt supported and knew I was in good hands.

Getting Responses at 9:00 pm at Night

The best lawyer you can hire for your case! Chad was extremely helpful and polite in answering all of my questions. I was even getting responses to my emails at 9 at night. He did a great job helping me get through the legal process. I recommend him to anyone needing a good lawyer.

Keen Sense of Justice and Honesty

Amaro is a very efficient attorney with extensive knowledge of the hispanic culture and language. He has a keen sense of justice and honesty. For the years I have know him he has proven to be a source of counsel. His clients will find his humble and cordial demeanor, appealing and refreshing. This is why I would recommend Amaro to everyone looking for legal advice.

Never Stops Working

An excellent attorney. Nicholas was very helpful with our case. He excelled at explaining complex legal concepts. Very accessible, we never had an issue getting an answer to a question. I don't think he stops working. Highly recommended.

Passion and Understanding for her Clients' Wishes

Attorney Cottle helped with my immigration case, she made the whole process much less stressful and you could tell she had a passion and understanding for her clients' wishes. Great experience, would highly recommend!

Available and Responsive to Needs of her Clients

Attorney Laborde shows professionalism in everything she does. She is a thorough lawyer who honestly cares about her clients and represents them to her full ability. She makes herself available and is responsive to the needs of her clients. I would certainly recommend her family law services!

Over-the-Top Attorney

From my experience, Attorney Kelsi Cottle has been an over-the-top attorney. She keeps me apprised of my case, has answered my questions, and treats me with respect. She has been very efficient, handles things expediently, and I feel I am represented by a very sharp attorney who has my best interest in mind.