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Irrevocable TrustIrrevocable Life Insurance TrustsTransferring a Policy to an ILITIrrevocable Trust and Executive Bonus (Illustration)Transfer Policy to Irrevocable Life Insurance Trust (ILIT)Irrevocable Trust and Split Dollar (Illustration)

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How a Life Insurance Trust Works

 

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An Irrevocable Life Insurance Trust can be designed for many special purposes, including the following:

 

When existing policies are transferred by the insured, the death proceeds are brought back into the estate unless the insured lives more than three years from the date of transfer.

 

The trust can buy assets from the estate or loan the estate money. The executor uses that money to pay the taxes, and the trust passes those assets to its beneficiaries.

 

* A tax advisor can assist you in designing your plan to qualify for the various tax advantages.

Irrevocable TrustIrrevocable Life Insurance TrustsTransferring a Policy to an ILITIrrevocable Trust and Executive Bonus (Illustration)Transfer Policy to Irrevocable Life Insurance Trust (ILIT)Irrevocable Trust and Split Dollar (Illustration)

 

 


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