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Healthcare Provider Update: Healthcare Provider for L3Harris L3Harris Technologies typically provides its employees with healthcare benefits through employer-sponsored insurance plans. The exact healthcare provider may vary based on location and specific employee circumstances, but major insurers commonly used include UnitedHealthcare, Anthem, and Cigna. Potential Healthcare Cost Increases in 2026 In 2026, L3Harris and similar employers are facing significant healthcare cost increases. Reports indicate a projected rise of approximately 8.5% in employer-sponsored insurance costs due to multiple inflationary pressures, including rising medical expenses and increased claims. Additionally, if the federal premium subsidies under the Affordable Care Act expire without renewal, employees may see a drastic rise in their out-of-pocket expenses, compounding the financial impact on both the company and its workforce. Employers are likely to respond by shifting more healthcare costs to employees, necessitating a proactive approach to managing these anticipated changes. Click here to learn more
L3Harris employees should consider estate planning with Irrevocable Life Insurance Trusts (ILITs) to protect their assets and provide liquidity for their heirs to help preserve their financial legacy, says (Advisor Name) of The Retirement Group, a division of Wealth Enhancement Group.
With changing tax laws and rising estate tax concerns, L3Harris employees can use an ILIT to shield their wealth from unnecessary taxes so their heirs get the full benefit of their life insurance benefits, advises (Advisor Name) of The Retirement Group, a division of Wealth Enhancement Group.
In this article, we will discuss:
1. Irrevocable Life Insurance Trusts - Their role in estate planning and tax management.
2. Key Benefits and Strategic Advantages - Understanding how ILITs provide liquidity, protect assets, and provide financial security for heirs.
3. Implementation and Tax Considerations - establishing an ILIT, tax implications, choosing the right trustee and insurance policy.
The only certainties in financial matters are death and taxes. You cannot avoid mortality, but you can manage taxes—especially in estate planning—accordingly. Everybody needs an estate plan—a will and a healthcare directive. For those with substantial wealth, however, anticipating future state and federal estate taxes requires more sophisticated strategies, like an irrevocable life insurance trust (ILIT).
An ILIT gives L3Harris employees many advantages—it provides liquidity to pay estate taxes and other costs and flexibility to your heirs. Consider the benefits and operation principles of an ILIT for L3Harris employees with substantial assets.
The Power of ILITs: Providing Liquidity and Flexibility
Estate taxes can be a big expense for your successors—and may require the sale of real estate or family businesses to raise cash. Using an ILIT can avoid such an administrative hurdle and possibly even the loss of valuable assets.
Most important in forming an ILIT is giving your heirs the flexibility to settle your estate. Your successors may cover estate taxes, debts, and other expenses without selling illiquid assets if they have life insurance policies in the trust. This not only protects their inheritance but also means they will be able to carry out your wishes and keep your possessions.
Assets held by the trust are not considered part of the estate for federal inheritance/estate tax purposes, which is one major advantage of an ILIT over individual life insurance policy ownership. This means your successors will pay no estate or inheritance taxes on the proceeds of your life insurance policy.
Who Needs an ILIT?
An ILIT is especially useful for:
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They predict that their estate will be over the federal and/or state tax exemption limits.Anticipate that their successors will need cash from a non-liquid estate to pay taxes.Want to manage and secure an inheritance for minors, special-needs individuals, or those without financial experience.They want to avoid probate and keep their estate confidential.The intent is to shield insurance benefits from divorce, creditors, or other legal action against them or their beneficiaries.
Estate Strategies to Consider: A Changing Landscape
The 2017 Tax Cuts and Jobs Act lifted the federal estate tax exclusion to USD 12.92 million per individual or USD 25.84 million for a married couple using portability. While this historically high exclusion amount may lead some to question the need for an ILIT, tax laws are always changing. The federal estate tax exclusions will not stay where they are now. State estate tax exclusions may also be less, so there may be state estate tax liabilities even if federal taxes are escaped.
An ILIT can provide a number of tax benefits but should not be formed lightly. This is an expensive legal arrangement that requires the services of a lawyer and is complicated to set up and maintain. It is an irrevocable trust, meaning the grantor cannot generally revoke or amend its terms without complying with state law and trust provisions once it is established. For any state or federal estate taxes that may be applicable to your estate, you should speak with a tax advisor or estate planning attorney about an ILIT.
How an ILIT Works: Providing for Future Generations
The grantor purchases a policy of life insurance through an irrevocable trust, called an ILIT. For couples, typically a survivorship or second-to-die policy is selected, with the death benefit payable upon the death of the surviving spouse.
When the grantor or surviving spouse dies, the insurance proceeds are deposited into the ILIT and distributed to trust beneficiaries—usually children, grandchildren, or other relatives. The manner of distribution depends on the trust structure, which may allow beneficiaries to access the funds shortly after the insured dies or distribute the assets gradually over time.
Making Gifts Count: Premium Payments and Tax Considerations
The premium payments on ILIT policies are usually funded through gifts from the grantor. Any available annual exclusions from the federal gift tax are usually limited to beneficiaries withdrawing up to the annual exclusion amount (USD 17,000 in 2023 per grantor, per beneficiary) on their portion of the gift within a short time frame following a gift. Optimal use of this strategy requires that beneficiaries understand the estate planning objectives and consequences of withdrawing gifts.
How to Choose the Right Insurance and Trustee
Both term-life and permanent-insurance options, such as whole life and universal life, are available for the ILIT's life insurance. Since the ILIT is designed to pass wealth to heirs only if the policy is in force at death, many L3Harris employees purchase permanent life insurance. Permanent plans offer coverage for life with a guaranteed death benefit, while term policies are age-limited.
When setting up an ILIT, research the financial strength of the life insurance company issuing the policy. Selecting a company with low premiums and high credit ratings offers peace of mind long-term. And a good trustee will help an ILIT run smoothly and responsibly.
Conclusion: Secure Your Wealth & Legacy
In conclusion, an Irrevocable Life Insurance Trust can be a valuable tool to protect your wealth, provide liquidity for your estate, and preserve your legacy as you wish. A constantly changing financial landscape means you need to protect your assets and provide for future generations. Work with estate planning attorneys and tax advisors to explore an ILIT tailored to your situation. And adding an ILIT to your estate plan might provide peace of mind and protection for your loved ones—whether you are approaching or are already retired.
In a 2023 AARP survey, 75% of Americans over age 60 worry that they will leave their relatives with a financial burden because of estate taxes and other expenses. An ILIT may be the best way to address these concerns. Including an ILIT in your estate plan gives your heirs the flexibility to resolve your estate and get cash without selling assets. It is a tax-savvy strategy that leaves the life insurance death benefits exempt from estate tax and easily transferred to your beneficiaries—protecting your legacy and securing your family's financial future.
See How Irrevocable Life Insurance Trusts Can Protect Your Wealth & Your Legacy. Learn how ILITs could help L3Harris workers approaching retirement age and active retirees manage estate taxes. With the highest federal estate tax rate set to hit 40% in 2023, an ILIT could allow flexibility for heirs without having to fork over prized assets to pay taxes. Your trust assets are excluded from your estate for tax purposes, so your beneficiaries will not owe estate or inheritance taxes on life insurance death benefits. ILITs provide liquidity that protects insurance benefits from divorce, creditors, and legal actions. Crafted to protect your wealth and protect your financial future.
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A properly drafted irrevocable life insurance trust is like a financial structure built to last. An ILIT protects your wealth and loved ones from estate taxation and forced asset sales just as a fortress defends valuables from outside threats. Imagine it as an invisible shield preventing estate taxes from affecting your beneficiaries as your life insurance benefits are transferred to them. Permanence and tax advantages protect your family's financial future with an ILIT—leave a legacy of security and wealth.
Added Fact:
In a 2023 study by WealthManagement.com, many L3Harris workers over age 60 still do not understand the potential benefits of Irrevocable Life Insurance Trusts (ILITs) in estate planning. A whopping 40% of respondents did not know that ILITs could be used to protect their wealth and legacy. That highlights the need to educate L3Harris workers about ILITs—especially with rising estate tax rates. Learning about the benefits of ILITs will help such people secure their financial futures and provide for their families without paying excessive estate taxes.
Added Analogy:
Making a financial legacy is like constructing a strong fortress for your family. As a fortified castle protects its treasures from outside dangers, so an Irrevocable Life Insurance Trust (ILIT) is a shield against estate tax burdens. Imagine your riches and your legacy as castle treasures. Your ILIT is like an enormous fortress, keeping your assets safe and ensuring they reach your heirs intact. This fortress is essential—especially with rising estate tax rates. Understanding ILITs can help L3Harris workers build this financial security for generations to come.
Sources:
1. Rosen, Richard. '7 Reasons for an Irrevocable Life Insurance Trust (ILIT).' Investopedia , 24 Oct. 2024. https://www.investopedia.com/articles/personal-finance/092315/7-reasons-own-life-insurance-irrevocable-trust.asp
2. Garza, Luis. 'How ILITs Help High Net Worth Families.' Garza Law Firm , Feb. 2025. https://lgarzalaw.com/how-ilits-help-high-net-worth-families
3. 'Irrevocable Life Insurance Trusts: Estate Planning Options.' Bogart Wealth , Sept. 2024. https://bogartwealth.com/irrevocable-life-insurance-trust-ilit
4. 'What Is an Irrevocable Life Insurance Trust (ILIT)?' Northwestern Mutual , Dec. 2023. https://www.northwesternmutual.com/life-and-money/what-is-an-irrevocable-life-insurance-trust
5. 'Can an ILIT Help Your Clients Prepare for the 2025 Estate Tax Sunset?' Life Insurance Trust Company , Mar. 2024. https://lifeinsurancetrustco.com/can-an-ilit-help-your-clients-prepare-for-the-2025-estate-tax-sunset
What specific factors should L3Harris Technologies employees consider when determining the most suitable form of pension benefit at retirement? Employees of L3Harris Technologies may have various options, such as life annuities, contingent annuities, and lump-sum payouts. Understanding the implications of each option, including tax treatments and benefit guarantees, can be crucial in making a decision that aligns with long-term financial goals. It is also important to consider how the selected form may affect survivor benefits and overall retirement income planning.
Pension Options at Retirement: L3Harris Technologies employees have various pension benefit options to consider at retirement, such as life annuities, contingent annuities, and lump-sum payouts(L3Harris Technologies I…). Each option has different tax treatments, survivor benefits, and guarantees. For example, selecting a life annuity ensures a fixed monthly payment for life, while a lump-sum payout might offer more flexibility but comes with immediate tax implications. Employees should evaluate how each option aligns with their long-term financial goals and whether it provides adequate survivor protection for dependents(L3Harris Technologies I…).
How does L3Harris Technologies determine eligibility for early retirement, and what implications does this have for pension benefits? Employees should familiarize themselves with the criteria for qualifying for early retirement, including age and service requirements. Additionally, understanding the benefits that are available should retirement occur before the standard retirement age can affect financial planning, as these benefits can differ significantly from those available at normal retirement age due to reduction factors or penalties.
Early Retirement Eligibility: L3Harris Technologies determines eligibility for early retirement based on age and years of service. Employees may qualify for early retirement if they are at least 55 years old and have completed 10 years of service(L3Harris Technologies I…). Opting for early retirement can result in a reduced pension benefit due to the longer payment period. These reductions, known as early retirement penalties, affect financial planning since the payout is lower compared to waiting until the normal retirement age(L3Harris Technologies I…).
In what ways do the pension formulas at L3Harris Technologies differ, and how can employees assess which plan is most advantageous for their retirement? Employees participating in the L3Harris pension plan can choose between different formulas, such as the Traditional Pension Plan and the Pension Equity Plan. Assessing which formula may yield higher benefits involves understanding the benefits calculation processes, including how each formula accounts for years of service, salary history, and participation criteria, which can significantly impact total retirement income.
Pension Formulas: L3Harris employees can choose between different pension formulas, such as the Traditional Pension Plan and Pension Equity Plan(L3Harris Technologies I…). The Traditional Plan is based on years of service and final average pay, while the Pension Equity Plan uses a lump-sum formula that accrues value over time. Understanding how each formula calculates benefits is essential for employees to determine which plan will provide higher retirement income, depending on their service years and salary history(L3Harris Technologies I…).
How should L3Harris Technologies employees prepare for the selection of a beneficiary, and what are the potential impacts on their pension benefits? Selecting a beneficiary is an important component of retirement planning. Employees at L3Harris Technologies must understand the implications that come with adding a spouse or other individuals as beneficiaries, including the effect on benefit amounts and how beneficiary selection can influence survivor payouts. Moreover, they should familiarize themselves with the requirements for updating beneficiary information and the legal implications of such designations.
Beneficiary Selection: Choosing a beneficiary is a crucial step for L3Harris employees. Adding a spouse or another individual as a beneficiary may reduce the employee's pension benefit but ensures that a portion of the pension continues after the employee's death(L3Harris Technologies I…). Employees should be aware of the survivor benefit provisions, spousal consent requirements, and the need to regularly update their beneficiary information(L3Harris Technologies I…).
What procedures must L3Harris Technologies employees follow to appeal a denied pension benefit claim, and what timelines should they be aware of? Employees should be well-informed about the steps involved in the appeals process for denied claims, including how and when to file an appeal and the importance of providing adequate documentation. Understanding the statutes of limitations related to claims and appeals can significantly influence the outcomes for employees seeking to reinstate or secure their benefits.
Appealing Denied Claims: L3Harris Technologies employees must follow a formal process to appeal denied pension benefit claims(L3Harris Technologies I…). The process includes submitting an appeal within a specific timeframe and providing supporting documentation. It is important to be familiar with the statute of limitations and administrative remedies to ensure the best chance of success when appealing a decision(L3Harris Technologies I…).
How does L3Harris Technologies handle survivor benefits, and what actions should employees take to ensure that their surviving spouses or partners have access to these benefits? Understanding the components of survivor benefits at L3Harris Technologies is crucial. Employees should learn about the eligibility of their spouses or partners following their death, the type of benefits due, and any actions required to secure these benefits. Familiarity with the plan’s rules surrounding survivor benefits and timelines for elections can also affect the financial security of beneficiaries.
Survivor Benefits: L3Harris offers survivor benefits to spouses or designated beneficiaries(L3Harris Technologies I…). Employees must ensure that their spouse or partner is properly designated to receive these benefits, which may involve selecting an annuity option that provides continued payments to the survivor. Understanding the timelines for making these elections and the rules governing survivor benefits is crucial for securing financial support for loved ones(L3Harris Technologies I…).
What resources are available for L3Harris Technologies employees for receiving personalized retirement counseling, and how can these resources aid in making informed financial decisions? Employees may benefit from accessing professional counseling services or informational resources provided by L3Harris Technologies. These resources can include individual retirement planning sessions that help employees align their pension benefits with their overall retirement strategy, ensuring that they utilize their benefits effectively and are informed about their options.
Retirement Counseling Resources: L3Harris provides personalized retirement counseling services to assist employees with their pension and retirement planning(L3Harris Technologies I…). These resources include individual sessions to discuss how pension benefits fit into overall retirement strategies. By leveraging these services, employees can make well-informed decisions about their financial future(L3Harris Technologies I…).
How can employees of L3Harris Technologies find out more about their eligibility for the Cash Balance Plan and the advantages of this plan over traditional pension formulas? Employees should research what defines an "active Cash Balance Plan Participant" as well as the benefit calculations associated with it. Investigating the elements that set this type of plan apart—specifically regarding lump-sum distributions and the ability to track benefits—can better inform employees about the potential advantages for their future retirement income.
Cash Balance Plan: Employees interested in the Cash Balance Plan can research its advantages over traditional pension formulas. The Cash Balance Plan allows for lump-sum distributions and provides clear benefit tracking, which can be more appealing to employees looking for flexibility and control over their retirement funds(L3Harris Technologies I…).
What impact do potential changes to the L3Harris Technologies pension plan have on current employees, and what steps should they take to stay informed about such changes? Employees should remain vigilant regarding any amendments to the pension plan that could influence their retirement benefits. This includes understanding their rights under ERISA and staying engaged with communication from L3Harris regarding plan updates, ensuring that they are equipped to make timely decisions based on the latest information.
Plan Changes: L3Harris employees should stay updated on any changes to the pension plan, which could impact their benefits(L3Harris Technologies I…). Monitoring communications from the company and understanding their rights under ERISA is essential to making timely decisions based on new plan terms or amendments(L3Harris Technologies I…).
How can employees of L3Harris Technologies contact the Benefits Service Center to address specific questions regarding their pension plan or retirement strategy? It is essential for employees seeking clarity on their pension benefits or retirement planning to know how to reach out to the L3Harris Benefits Service Center. This center acts as a vital resource, and understanding its operations—including contact times, methods of contact, and the types of inquiries that can be addressed—will enable employees to receive the guidance they need regarding their benefits.
Benefits Service Center: L3Harris employees can contact the Benefits Service Center for any questions regarding their pension or retirement strategy. The center provides assistance with understanding pension benefits, resolving issues, and addressing specific inquiries related to retirement planning(L3Harris Technologies I…)(L3Harris Technologies I…).
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