Irrevocable Life Insurance Trusts
Irrevocable Life Insurance Trusts: A Primer
Gain a comprehensive understanding of gifting and trusts and how to leverage their options that best suits your estate planning goals in this eight-part video series.
The main goal of an Irrevocable Life Insurance Trust (ILIT) is to remove the death benefit of a life insurance policy from your taxable estate while still providing financial security for your beneficiaries. This strategy offers several advantages:
- Tax benefits
- Asset protection and control
- Privacy
- Flexibility
Important considerations:
- Irrevocable nature: Once assets are transferred to the ILIT, you cannot reclaim them. Careful planning and understanding your financial situation are essential before establishing an ILIT.
- Cost and complexity: Setting up and managing an ILIT can involve legal and administrative fees. Consulting with financial and legal professionals is recommended to ensure the trust is properly drafted and meets your goals.
Overall, an ILIT can be a valuable estate planning tool for individuals seeking to maximize tax benefits, protect their assets, and control the distribution of their life insurance proceeds.
This video, the fourth in the series, explains Irrevocable Life Insurance Trusts.
Video 4
Irrevocable Life Insurance Trusts can be a valuable estate planning tool. Mark Kassens discusses ILITs: their uses, how they work, who typically uses ILITs, and how ILITs can be used to save on estate taxes and provide liquidity for beneficiaries. Mark also discusses the different types of life insurance policies that can be used in an ILIT, as well as the pros and cons of each type.
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Estate, Trust, and Succession Planning Services
Mark’s background in tax enables him to provide extensive services to the firm’s clients in the areas of estate and retirement planning, and business succession consulting.