Some people set up life insurance trusts to transfer the money out of their estate, so that their heirs will not have to pay estate taxes on the life insurance proceeds (if the estate is over the amount exempt from estate taxes). This is called an irrevocable life insurance trust and it transfers ownership of the policy to the trust.
Some people use Life Insurance Trusts to give money to charity, fund their child's or grandchild's education, or distribute funds to their beneficiaries in the manner they best see fit.
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Some people use Life Insurance Trusts to give money to charity, fund their child's or grandchild's education, or distribute funds to their beneficiaries in the manner they best see fit.