A grantor can establish an irrevocable trust into which property or cash may be transferred, thereby decreasing the value of the estate. These trusts generally avoid probate at the grantor's death. One disadvantage to this method of avoiding estate tax is that the trust truly needs to be irrevocable. Irrevocable means that (1) the individual cannot terminate or change the terms of the trust once established and (2) the individual does not have access to the funds in the trust.

How a Life Insurance Trust Works | Irrevocable Life Insurance Trusts | Transferring a Policy to an ILIT | Irrevocable Trust and Executive Bonus (Illustration) | Transfer Policy to Irrevocable Life Insurance Trust (ILIT) | Irrevocable Trust and Split Dollar (Illustration)

 

 

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