Irrevocable Life Insurance Trust (ILIT)
An Irrevocable Life Insurance Trust (ILIT) offers the ability to own a life insurance policy separate from your estate, thereby avoiding taxes on the value of the payout upon your death.
The life insurance in an ILIT is not included in estate tax or income tax computations. That allows you to establish an insurance policy that will benefit your heirs free from estate or income taxes - a significant consideration for your estate plan.
Features and Benefits
- Reduce estate tax burden.
- Increase the value of assets to heirs.
- Provide cash stream to cover family needs.
- Funds controlled even after your passing.
- Provide additional source to pay estate taxes.