Dodge life insurance tax trap by setting up a trust.

The article discusses how to avoid tax problems when one possesses a life insurance policy of his or her own life. It states that when one possesses a life insurance policy, the proceeds are included in his or her estate for federal estate tax purposes. It suggests that one should set up an irrevocable life insurance trust and transfer ownership of the policy to the trust. It notes that in doing this, the family can save tens or hundreds of thousands of estate tax dollars. INSET: The kids are alright.