Why Create An Irrevocable Life Insurance Trust?
1380 POINTSview profileJames ElbaumPresident | Founder, CLM Insurance Group, Delray Beach, FLThe main purpose of an Irrevocable Life Insurance Trust (ILIT) is to avoid the taxing of life insurance proceeds upon death of the insured. The trust becomes the owner of the life insurance policy alleviating the increased assets of the insured. Often spouses and or children become the trustees. Also, ILIT's are used as a source of quick cash to pay estate tax bills without increasing the overall size of your estate.Answered on April 16, 2014flag this answer
21750 POINTSview profileJim WinklerCEO/Owner, Winkler Financial Group, Houston, TexasGreat question! In addition to the tax savings and sailing through probate, often there are some other benefits offered by the companies that can make these attractive. There are companies that will provide legal services for will writing and estate planning; some will provide you with the opportunity to pre-plan and create your own funeral service, so your loved ones don't have to. If you would like more information, please contact me, I'd be happy to help. Thanks for asking!Answered on April 16, 2014flag this answer
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