A life insurance trust is a legal instrument that is normally used as an estate planning tool. A funded trust owns the life insurance policy and the assets to pay (fund) the premiums.
The trust is both the owner and beneficiary in most cases.
When establishing any trust, including a life insurance trust, you should consult with a qualified estate attorney. Creating the trust can be anywhere from a few hundred dollars to several thousand, depending on the complexity of the estate.
First make sure that you need one. The federal estate unified credit is over 10 million dollars for a married couple. If your present assets and growth of your state will never exceed 10 million, maybe you should reconsider. Consumer online irrevocable life insurance trusts (ILIT) can go from $300- $500 depending on their detail. Depending on where you live, you may pay $1,200 to $2,500 for an ILIT.
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The trust is both the owner and beneficiary in most cases.
When establishing any trust, including a life insurance trust, you should consult with a qualified estate attorney. Creating the trust can be anywhere from a few hundred dollars to several thousand, depending on the complexity of the estate.