Irrevocable Life Insurance Trust
We often prepare separate trusts just to hold life insurance policies and administer the proceeds after death. An irrevocable life insurance trust is a special type of trust that cannot be materially changed or terminated after it is set up. Properly designed, the ILIT offers your loves ones liquidity at your death, but keeps the policy proceeds out of your probate estate. In addition, the IRS should not consider the proceeds to be part of your estate, thus not subject to estate taxes at your death. An irrevocable life insurance trust is a terrific vehicle through which to provide your loved ones money to pay ongoing living expenses or any estate taxes due. We will counsel you as to when an irrevocable life insurance trust may be useful to you. We also offer continued counsel throughout the life of this trust.