Exploring Irrevocable Life Insurance Trusts (ILITs)
Life insurance can be a useful, tax-efficient tool for ensuring the transfer of wealth and assets across generations – but finding the right structure to support your estate planning goals is crucial. As you begin your estate planning process, an irrevocable life insurance trust (ILIT) can provide a host of tax and non-tax advantages, as well as greater control over a life insurance policy that a last will and testament may not provide.
What is an ILIT?
An ILIT is a trust created to own and control one or more life insurance policies while the insured is still alive. The trust is irrevocable, meaning it cannot be altered or rescinded once it is created. By moving your life insurance policies into the control of a trust, the ILIT becomes the owner and beneficiary of the policies, allowing for several potential benefits once insurance proceeds are paid out.
Benefits of ILITs
For more information about trusts, contact your Key Private Bank Advisor