Jul 17
Irrevocable life insurance trusts (ILIT)
An irrevocable life insurance trust keeps the death benefits outside a person’s estate so that they are not subject to estate settlement costs, income taxes and federal estate tax.
When you create a trust, you choose if you want the trust to be revocable or irrevocable. A revocable trust can be changed or even be dissolved by you.
On the other hand, an irrevocable trust can NEVER be changed. Beneficiaries cannot be added or deleted. And the only way to change the trustee is for that person to die or agree to resign.
More after the jump…
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January 23rd, 2008 at 3:24 pm
Good advice on irrevocable life insurance trusts. Instead of just a financial planner. I would suggest a qualified candidate assemble a team of experts in their fields: tax, legal, planning, investments, and insurance. Undoing an irrevocable decision later on could be a costly mistake.