Understanding Irrevocable Life Insurance Trusts (ILITs)
An irrevocable trust is a trust agreement which cannot be changed once the agreement has been finalized and signed. Irrevocable trusts are commonly set up in order to protect assets and estates from being subjected to massive estate taxes and in order to ensure the trust maker’s beneficiaries receive access to the estate as originally intended.
Another way individuals can protect their estate and provide for their loved ones is through the establishment of irrevocable life insurance trusts, also known as insurance trusts. An irrevocable life insurance trust is a trust set up for the sole purpose of being the owner of a life insurance policy. When a life insurance policy is established in this manner, the policy proceeds are not subject to estate taxes when the policy owner dies.
The benefits of preparing and using irrevocable life insurance trusts, or ILITs, include the avoidance of estate taxes, reducing the amount of your taxable estate, providing a way for your beneficiaries to be able to pay your estate taxes (due to the extensive size of your estate), and the ability to set up rules or limits as to exactly how and when money will be distributed to your beneficiaries.
Legal matters can be complex, however, and when it comes to life insurance trusts and other estate planning, it is essential your documents and preparations are not only accurate but exact. That is why it is important to contact an irrevocable life insurance trusts lawyer at WealthPLAN, PC, today. We can evaluate your specific situation in order to help you determine the best options for protecting your assets, providing for your family and meeting your estate planning needs.
Irrevocable Life Insurance Trusts Lawyers
With over 30 years of experience in estate planning, advanced estate planning, tax, trust administration and litigation, WealthPLAN, PC, is who you want preparing your irrevocable life insurance trusts and other estate planning documents. We understand how important it is to ensure your family and beneficiaries are taken care of in the event of your death. Our team is there to evaluate your needs and assist you in making the smart, timely choices which will not only reduce the exposure of your estate to taxes, but also allow your beneficiaries to receive your assets and estate as you originally intended.
To schedule a confidential consultation in order to discuss your irrevocable life insurance trust and estate planning needs, contact an irrevocable life insurance trusts attorney at WealthPLAN, PC, today.