You may not be aware that all of the proceeds from life insurance policies that you own at death will be included in your estate for estate tax purposes.  You want a way to avoid the taxing of your life insurance at death.

Our attorneys are well-versed in ILITs that are specifically designed to hold and own life insurance policies.  We can set up an ILIT that:

  • Transfers ownership of your life insurance policies to the Trustee of the ILIT which can be your spouse and/or children
  • Demonstrates that you have given up all of your incidents of ownership over the policies which translate into proceeds that cannot be taxed in your estate when you die
  • Deposits the insurance proceeds into the ILIT and holds in trust for the benefit of your spouse during his or her remaining lifetime
  • Passes the balance to your children or other beneficiaries
  • Provides your family with a quick source of cash to pay your estate tax bill while at the same time not increasing your overall estate tax burden

Let our attorneys show you the benefits of how insurance proceeds held in trust for the benefit of your spouse instead of going directly to your spouse can prevent your spouse’s estate from being taxed as well.

 

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