An irrevocable life insurance trust (ILIT) can be an important component of a comprehensive estate plan for individuals who want to manage life insurance proceeds outside of their taxable estate. In Arnold and the surrounding Calaveras County communities, creating an ILIT helps policy owners control how death benefits are paid and used while reducing potential estate tax exposure. At the Law Offices of Robert P. Bergman, we work with clients to design ILITs that coordinate with existing trusts, wills, powers of attorney, and healthcare directives. The result is a clear plan that protects family financial security and reflects each client’s priorities and circumstances.
Setting up an ILIT involves a sequence of careful decisions including selecting a trustee, transferring ownership of the policy into the trust, and structuring gift transfers that comply with federal tax rules. For many clients in Arnold, this process requires coordination with retirement accounts, business succession plans, and other estate documents such as pour-over wills and certification of trust forms. Our approach emphasizes clear communication, timely follow through, and documentation that supports long-term goals. We listen to client concerns and prepare the trust so it functions as intended when benefits are needed most.
An ILIT can provide liquidity to pay estate taxes, offer creditor protection for life insurance proceeds, and ensure that beneficiaries receive proceeds under terms you control. For families with significant life insurance coverage, an ILIT removes the policy from the grantor’s taxable estate, which may reduce estate tax exposure when coordinated with other planning tools. Additionally, an ILIT’s trustee structure allows a trusted person to manage distributions for minors or beneficiaries who need assistance, helping to avoid unintended spending and promote long-term financial security. Proper drafting and funding are essential to achieve each of these benefits reliably.
Law Offices of Robert P. Bergman serves clients throughout San Jose, Arnold, and broader California communities, with a long-standing focus on estate planning and related matters. We assist individuals and families with revocable living trusts, wills, powers of attorney, advance health care directives, and trust funding to create cohesive plans. Our firm emphasizes practical solutions tailored to client needs, clear explanations of legal options, and careful attention to documentation like certification of trust and pour-over wills. When setting up an ILIT, we coordinate with financial advisors and trustees to ensure smooth implementation and ongoing administration.
An ILIT is a trust established to own and control one or more life insurance policies for the benefit of designated beneficiaries. Because the trust is irrevocable, ownership of the policy is removed from the grantor’s estate once the transfer and any required gift reporting are complete, which can help reduce estate tax exposure. Selecting the trustee and naming beneficiaries are central decisions, and the trust terms determine how proceeds will be distributed. Proper coordination with beneficiary designations, retirement accounts, and other estate documents prevents unintended overlaps and ensures the ILIT achieves the client’s intended objectives.
Funding an ILIT commonly involves transferring an existing policy or having the trust apply for and own a new policy. When transferring an existing policy, certain timing rules and potential gift tax reporting obligations must be observed. For newly issued policies, the trust becomes the owner and pays premiums, often using annual gifts from the grantor under gift tax exclusions. Trustee duties include managing premium payments, keeping appropriate records, and distributing proceeds according to the trust terms. Ongoing review is advisable to reflect life changes and maintain tax compliance.
An irrevocable life insurance trust is a legal arrangement that holds a life insurance policy outside of the grantor’s personal estate, governed by trust terms drafted at creation. The trust becomes the owner and beneficiary of the policy, and the trustee manages premium payments and eventual distributions. Common objectives for establishing an ILIT include preserving death benefits for heirs without adding to estate taxes, shielding proceeds from creditors, and providing controlled distributions for beneficiaries who may be minors or require management. The irrevocable nature means the grantor cannot later reclaim control of the trust assets without specific legal mechanisms.
Creating an ILIT involves drafting the trust document with clear distribution provisions, selecting a responsible trustee, transferring existing policy ownership or issuing a trust-owned policy, and arranging for premium funding. The grantor typically makes annual gifts to the trust for premium payments, which may rely on the annual gift tax exclusion and require timely gift tax filings as appropriate. The trustee must maintain records of gift receipts and premium payments to provide an audit trail. Coordination with estate planning documents such as wills, revocable living trusts, and beneficiary designations ensures the ILIT integrates effectively with the overall plan.
Understanding common terms helps clients make informed decisions about ILITs. Important concepts include grantor, trustee, beneficiary, funding, gift tax exclusion, taxable estate, pour-over will, and certification of trust. These terms describe who creates and manages the trust, how the trust is funded, and how it coordinates with other estate planning tools. Clear explanations and documentation reduce the risk of missteps that could unintentionally bring the policy back into the estate or create administrative challenges for trustees and beneficiaries when benefits are paid.
An irrevocable trust is a trust that generally cannot be amended or revoked by the grantor after it has been validly created and funded. This permanent structure is used when removing assets from an estate is desired for tax, creditor protection, or beneficiary control reasons. For an ILIT, the irrevocable status is essential because it separates the life insurance policy and its proceeds from the grantor’s estate. While permanence provides certain benefits, it also requires careful planning to ensure the trust’s terms align with long-term goals and changing family or financial situations.
The trustee is the individual or entity responsible for managing the trust assets, paying premiums on the life insurance policy, maintaining records, and distributing benefits to the named beneficiaries according to the trust terms. Selecting a trustee requires consideration of trust administration skills, availability, impartiality, and continuity. Trustees must follow fiduciary duties imposed by law and act in the beneficiaries’ best interests, keeping accurate accountings and communicating with beneficiaries when appropriate. The trust document can name successor trustees to provide continuity over time.
The grantor is the person who establishes the trust and transfers the life insurance policy into the ILIT. The grantor typically makes the initial decisions about trust terms, beneficiary designations, and funding strategies. After the trust is created and ownership of the policy is transferred to the ILIT, the grantor generally does not retain control over the policy. That separation is what enables the potential tax and protection benefits associated with ILITs. Grantors should understand timing rules and gift tax implications when transferring policies or making premium gifts to the trust.
A beneficiary is any person, organization, or entity entitled to receive benefits from the trust according to its terms. In an ILIT, the trust itself receives the policy proceeds and the trustee then distributes those funds to beneficiaries following the grantor’s instructions. Beneficiaries can include spouses, children, grandchildren, charities, or other entities. Drafting precise distribution rules helps ensure beneficiaries receive proceeds in a manner that reflects the grantor’s intentions and addresses concerns like creditor protection, age-based distributions, or support for special needs family members.
Deciding between a limited, document-only approach and a comprehensive ILIT plan depends on financial complexity, family dynamics, and long-term goals. A limited approach might involve only changing beneficiary designations or purchasing a modest policy without a trust, which can be quicker and less costly but may leave proceeds subject to estate taxes or creditor claims. A comprehensive ILIT plan shapes ownership, funding, and distribution mechanics with the goal of preserving value and controlling outcomes. Discussing both routes helps clients weigh upfront costs against long-term benefits and administrative needs.
A limited approach can be suitable for individuals whose life insurance holdings are relatively small and where estate tax exposure is minimal. In such cases, changing beneficiary designations or aligning policy ownership with current needs may provide adequate protection without the expense and administration of an ongoing trust. If the policy proceeds will not push the total estate toward federal or state estate tax thresholds, or if the primary objective is a simple transfer to a surviving spouse who will manage assets, a straightforward plan may meet the client’s objectives while keeping administration and costs lower.
When beneficiaries are clear, mature, and capable of managing lump sum proceeds without the need for long-term oversight, a limited approach can be appropriate. Policies paid directly to adult beneficiaries often require less ongoing administration and avoid trustee fees and recordkeeping. For clients whose goals are simple and who prefer direct control or immediate liquidity for survivors, updating beneficiary designations and confirming the policy ownership details may accomplish the primary objectives without additional trust formalities.
A comprehensive ILIT is often advisable when the goal is to remove a policy from the grantor’s estate and protect the proceeds from creditor claims, divorce settlements, and unintended beneficiaries. In situations with high life insurance coverage or complex asset holdings, trust ownership establishes a legal separation that can preserve value for intended heirs. Thoughtfully drafted distributions, contingent beneficiaries, and trustee powers help control how proceeds are used and preserved, which provides greater predictability and protection for beneficiaries over time.
Families with blended marriages, minor children, adult beneficiaries with special needs, or business ownership interests often benefit from a comprehensive ILIT that coordinates with broader succession and support plans. A trust can set terms for staggered distributions, age-based releases, or conditions tied to education and health needs. For business owners, an ILIT can help provide liquidity for succession planning and reduce disruptions after a death. Comprehensive planning considers these complexities to create durable arrangements that align with long-term family and business objectives.
A comprehensive ILIT plan offers multiple advantages, including greater control over distribution timing, potential estate tax relief, protection from creditors, and coordination with other estate documents to avoid conflicts. It also creates a clear administrative framework for trustees to follow, with instructions tailored to family needs and financial circumstances. By establishing precise terms for distributions and successor trustees, clients can reduce uncertainty for beneficiaries and provide a framework for long-term stewardship of policy proceeds.
Comprehensive planning can also streamline communication with financial institutions and help beneficiaries access resources efficiently when needed. Integrating the ILIT with retirement plan designations and a pour-over will avoids overlapping beneficiary designations that might otherwise lead to disputes or unintended tax results. While a trust requires careful initial setup and some administration, the clarity and protection it provides often outweigh those costs over time, particularly for families seeking to preserve wealth across generations.
One key benefit of an ILIT is providing liquidity to pay estate obligations such as taxes, debts, or administrative costs without forcing the sale of family assets. Trust-held life insurance proceeds can be managed and distributed according to plan terms, helping to preserve property and business continuity. Properly structured ILIT arrangements can also reduce estate tax exposure by keeping the policy outside the grantor’s estate, provided ownership and gift rules are followed. These planning steps help protect family wealth and simplify the transition period after a death.
An ILIT allows grantors to define how and when beneficiaries receive proceeds, offering protection for minors or those who may need assistance managing funds. Trust provisions can provide staged distributions based on age or milestones, require accountable use for education or healthcare, or create discretionary distributions managed by a trustee. This structure helps prevent sudden windfalls from being misused and ensures that proceeds support the long-term welfare of beneficiaries. Such protections are particularly valuable for families with special circumstances or diverse financial needs.
Selecting a trustee requires careful thought because this person or entity will manage premium payments, maintain records, and distribute proceeds according to the trust terms. Consider factors such as reliability, financial acumen, impartiality, and willingness to serve over time. Many clients select a trusted family member paired with a corporate trustee or professional fiduciary to provide continuity and objective administration. Including clear successor trustee provisions ensures the trust operates smoothly if the primary trustee becomes unable to serve or steps down.
An ILIT should not exist in isolation; it must align with your will, revocable trust, powers of attorney, and retirement account designations. Failing to coordinate beneficiary designations or other documents can create unintended overlaps or conflicts. Review all estate planning documents periodically, especially after major life events such as marriage, divorce, births, or changes in financial circumstances. Regular reviews ensure the ILIT continues to reflect intentions and integrates seamlessly with succession and legacy planning objectives.
Clients often pursue an ILIT when they own significant life insurance policies that could increase estate tax exposure or when they want to provide structured distributions to beneficiaries rather than lump sum payments. An ILIT can preserve policy proceeds for intended heirs, protect those funds from creditors, and provide flexibility in how distributions are made for education, health care, or upkeep. For families with a business, property holdings, or complex beneficiary issues, an ILIT helps manage liquidity and control outcomes at a time when clarity is most valuable.
Other reasons to consider an ILIT include protecting proceeds from divorce settlements, addressing special needs planning while maintaining eligibility for public benefits, and supporting long-term philanthropic goals. The ILIT can be designed with specific triggers and distribution standards to align with family objectives and values. Because the trust is irrevocable, it requires careful planning at the outset, but once in place it can provide stability and predictable administration during a difficult period for survivors.
Typical circumstances that lead clients to create an ILIT include ownership of large life insurance policies, concerns about federal or state estate taxes, desire to protect proceeds from creditors or divorce, and the need to provide managed distributions for minor children or vulnerable family members. Business owners frequently use ILITs as part of succession plans to ensure liquidity for buyouts or to support continued operations. In each circumstance, the ILIT is tailored to the client’s objectives and coordinated with the rest of the estate plan.
When life insurance coverage is substantial relative to overall estate value, transferring ownership to an ILIT can remove the policy from the grantor’s taxable estate and help preserve more assets for heirs. This step requires careful timing and adherence to gifting rules to avoid unintended estate inclusion. Clients should review the total estate picture, consider whether proceeds will be needed for estate liquidity, and work with counsel to structure the trust ownership and funding to align with financial and family goals.
Blended families and families with varied beneficiary needs benefit from the flexibility of a trust-based approach. An ILIT lets the grantor specify distribution terms for different beneficiaries, protecting intended heirs and providing for children from prior relationships while still supporting a surviving spouse if desired. Clear trust provisions reduce the likelihood of disputes and allow for tailored distributions such as age-based releases or conditions tied to education, ensuring that sensitive family dynamics are addressed in a predictable manner.
Business owners often need liquidity at the time of a death to fund buy-sell agreements, pay estate taxes, or provide working capital for continued business operations. An ILIT can hold a life insurance policy intended specifically to meet those liquidity needs, ensuring funds are available without forcing the sale of business interests. Coordinating the ILIT with succession planning and buy-sell documents helps preserve business continuity and provides a clear roadmap for owners and heirs in the event of an unexpected death.
We provide ILIT and estate planning services to residents of Arnold and nearby Calaveras County communities, offering local knowledge and practical guidance. Our office assists with trust drafting, trustee selection, policy transfers, and coordination with other estate planning documents like pour-over wills and advance health care directives. Clients can expect attentive communication, thorough document preparation, and assistance with funding to ensure the ILIT functions as intended. When circumstances change, we help update plans to maintain alignment with estate and family objectives.
Clients select our firm for thoughtful estate planning counsel that emphasizes clarity, effective drafting, and coordination with other estate documents. We help clients in Arnold and throughout California create ILITs that reflect their goals while managing the administrative steps needed to fund and maintain the trust. Our approach prioritizes direct communication, practical solutions, and careful attention to legal formalities so documents perform as intended when they matter most to families and beneficiaries.
We work collaboratively with financial advisors, insurance agents, and trustees to ensure the ILIT fits into the broader financial and legacy strategy. This coordination reduces gaps that can create unintended tax consequences or administrative burdens. Clients receive guidance on trustee duties, gift timing, recordkeeping, and beneficiary coordination so that the trust remains a reliable vehicle for achieving its intended purposes across changing circumstances and life events.
The firm also provides ongoing support for trust administration and periodic plan reviews. Life changes such as marriage, divorce, births, deaths, or changes in state and federal tax rules may require updates to the trust or related documents. By offering review and amendment services when appropriate, we help clients keep their plans effective, responsive, and aligned with evolving goals and legal requirements.
Our process begins with a comprehensive consultation to understand your goals, family dynamics, and financial picture. We then design a trust document tailored to those objectives, coordinate policy ownership changes or trust-owned policy applications, and prepare supporting documents such as certification of trust and pour-over wills. After execution, we assist with funding and documentation of premium gifts and provide guidance for trustee administration. Periodic reviews ensure the trust continues to function as intended as circumstances evolve.
The first step involves discussing your estate planning goals, life insurance ownership, beneficiary preferences, and any family circumstances that affect distributions. We gather necessary documents such as existing policies, beneficiary designations, previous estate planning instruments, and financial summaries. This discovery phase allows us to identify timing considerations, tax implications, and coordination needs with other planning tools. Accurate information at this stage supports efficient drafting and avoids later adjustments that could complicate the trust’s tax position.
We explore objectives such as providing for a surviving spouse, protecting assets for children, supporting a family business, or setting up long-term distributions. Understanding beneficiary needs and potential risks helps determine appropriate trust provisions, such as discretionary distributions, age-based releases, or protective language for beneficiaries facing creditor risk. Clear, client-centered planning at this stage ensures the ILIT aligns with both immediate needs and anticipated future developments.
Collecting policy statements, ownership records, beneficiary forms, and financial summaries is essential to evaluate whether transferring a current policy or issuing a new trust-owned policy is the best course. We review premium schedules, loan values, and policy terms to advise on timing and funding mechanics. Proper documentation supports accurate drafting and avoids surprises during transfer, while also preparing the paperwork needed for any required gift tax reporting or annual trust accounting.
Once goals and documentation are clear, we draft the ILIT document with tailored distribution rules, trustee powers, and successor trustee provisions. We prepare ancillary documents like certification of trust and coordinate the execution process to ensure signatures and formalities are completed correctly. This phase also includes preparing instructions for transferring policy ownership or requesting a new policy to be issued in the trust’s name, and ensuring that all actions align with the intended tax and protection outcomes.
Trust terms specify who will receive benefits, the conditions for distributions, trustee authorities, and successor trustee arrangements. Ancillary documents such as a pour-over will, powers of attorney, and advance health care directives are coordinated to create a cohesive plan. Drafting focuses on clarity and long-term functionality, reducing ambiguity that can lead to disputes or administrative burdens for trustees and beneficiaries after a death.
Execution includes signing the trust and related documents in compliance with legal formalities, and then transferring policy ownership to the trust or applying for a new trust-owned policy. We provide step-by-step guidance on completing ownership transfer forms with insurers and help document gifts used to fund premium payments. Proper execution and transfer are essential to ensure the ILIT accomplishes the intended estate and tax objectives.
After the trust is funded, ongoing administration focuses on premium payments, trustee recordkeeping, and coordination with beneficiaries and advisors. Trustees should maintain gift documentation, accountings of premium receipts and disbursements, and communications regarding distributions. Regular reviews of the trust’s operation, policy performance, and beneficiary circumstances help ensure the ILIT remains aligned with client objectives and legal requirements over time.
Funding typically occurs through annual gifts from the grantor to the trust, often structured to take advantage of gift tax exclusions. Trustees should record these gifts, track premium payments, and retain supporting documentation to establish compliance. Accurate recordkeeping is important for tax positions and for providing clear information to beneficiaries and advisors. We assist clients with templates and guidance to simplify this administrative burden for trustees.
Periodic reviews ensure that the ILIT continues to reflect the client’s intentions in light of life changes, policy performance, or changes in tax rules. If adjustments are needed in related documents, such as wills or powers of attorney, we coordinate updates to maintain consistency across the estate plan. Ongoing attention helps avoid problems that can arise from outdated beneficiary designations or mismatched documents when the time comes for benefit distribution.
An irrevocable life insurance trust is a trust that owns a life insurance policy and governs how the policy proceeds are held and distributed after the insured’s death. The grantor establishes the trust, names a trustee who will manage the policy and funds, and designates beneficiaries who will receive trust distributions. Because the trust becomes the policy owner, proceeds paid on death are held by the trustee and distributed according to trust terms, which can address timing, conditions, and creditor protection. The irrevocable nature means the grantor generally cannot reclaim ownership of the policy once ownership is transferred to the trust. Setting up an ILIT also involves considerations about gift tax rules and the timing of transfers. If an existing policy is transferred, certain three-year rules may apply that could bring proceeds back into the estate if the insured dies too soon after transfer. For new policies purchased by the trust, the trust pays premiums using gifts from the grantor, often under annual gift exclusion strategies. Proper planning and documentation are essential to achieve the intended estate and tax outcomes and to provide clarity for trustees and beneficiaries.
Transferring a life insurance policy into an ILIT can remove the policy and its death benefit from the grantor’s taxable estate, which may reduce estate tax exposure and preserve more assets for heirs. An ILIT also provides a framework for controlling distributions, protecting proceeds from creditors, and ensuring funds support intended purposes such as education or family support. For many clients, these protections are valuable because they create predictable outcomes and a dedicated pool of funds managed by a trustee for beneficiaries. Another reason to transfer a policy into a trust is to coordinate life insurance with other estate planning tools. Without a trust, beneficiary-designated proceeds may pass directly to individuals and be exposed to creditors, divorce settlements, or mismanagement. The ILIT allows the grantor to tailor languages for staggered distributions, conditions, and trustee discretion that reflect family needs. This level of control and protection can be particularly important in blended families, business succession scenarios, or when beneficiaries may require long-term support.
Funding an ILIT commonly involves the grantor making annual gifts to the trust to cover premium payments. These gifts are often structured to use the annual gift tax exclusion so that the trust receives sufficient funds without generating gift tax liability. When the trust receives funds from the grantor, the trustee uses those funds to pay policy premiums, and the trustee maintains records of each gift and payment to establish a clear audit trail. Careful attention to gift timing and documentation is essential to support the trust’s tax position. If an existing policy is transferred to the trust, the transfer may be considered a taxable gift and could require gift tax filing depending on its value. In addition, if the insured dies within three years of transferring a policy to an ILIT, the proceeds may still be included in the grantor’s estate under applicable rules. For these reasons, some clients choose to have the trust purchase a new policy or to consider timing and tax filing strategies in consultation with counsel and advisors.
Choosing a trustee is a critical decision because the trustee will manage premium payments, keep records, and distribute proceeds according to the trust terms. Common choices include a trusted family member with financial maturity, a close friend who understands the family dynamics, or a corporate trustee that provides continuity and administrative resources. Some clients prefer a co-trustee arrangement that pairs a family member with a professional fiduciary to balance personal knowledge with impartial administration. When selecting a trustee, consider reliability, financial competence, willingness to serve over time, and the ability to handle potential conflicts among beneficiaries. The trust should name successor trustees to ensure continuity if a trustee becomes unavailable. Clear trustee powers and duties in the trust instrument reduce ambiguity and guide efficient administration, which benefits beneficiaries and reduces the likelihood of disputes.
It is common for grantors to wonder whether they can serve as trustee or beneficiary of their own ILIT. Typically, the grantor should not retain certain powers or ownership rights that would cause the trust assets to be included in the grantor’s taxable estate. While a grantor may be a beneficiary in limited circumstances, having the grantor also act as trustee or retaining control over who receives distributions can undermine the trust’s intended separation and tax benefits. Therefore, careful drafting is required to avoid retaining powers that could defeat the trust’s purposes. Many grantors instead select an independent trustee or co-trustee to ensure the trust is truly separate. This arrangement supports the goal of removing the policy from the taxable estate and provides a clear administrative structure for premium payments and distributions. Discussing trustee roles and acceptable retained powers with legal counsel will help preserve the trust’s intended benefits and avoid inadvertent estate inclusion.
To transfer a policy into an ILIT, you will generally need the existing policy contract, an assignment of ownership form signed by the current owner, and documentation showing the trust’s creation such as the trust instrument and certification of trust. The insurer’s forms for changing ownership and beneficiary designations must be completed precisely, and the trustee may need to provide the trust’s taxpayer identification number for policy records. Accurate documentation prevents processing delays and ensures the insurer recognizes the trust as the new owner and beneficiary. If a new, trust-owned policy is issued, the application should identify the trust as the owner and beneficiary and list the trustee who will sign on behalf of the trust. Recording the transfer and maintaining copies of submitted forms, premium payment records, and gift documentation are important administrative steps. Counsel can assist with preparing the paperwork and coordinating with insurance agents to accomplish a smooth transfer or issuance process.
An ILIT must be coordinated with a will, revocable living trust, powers of attorney, and healthcare directives to ensure a cohesive estate plan. Beneficiary designations on retirement accounts and life insurance policies should be reviewed so they do not conflict with trust goals. A pour-over will can help move assets into a revocable trust at death, while the ILIT specifically governs life insurance proceeds. Coordinating documents reduces the risk of overlapping interests or unintended outcomes that could create confusion or disputes for heirs and fiduciaries. Periodic reviews of all estate planning documents are essential because life events such as marriage, divorce, births, or changes in financial circumstances can alter planning needs. Updating beneficiary forms and trust provisions when circumstances change preserves the intended results. We work to ensure the ILIT integrates with the broader plan so trustees and family members understand how assets are expected to be managed and distributed over time.
Yes, an ILIT can be an effective component of business succession planning by providing liquidity to fund buy-sell agreements or to support the transfer of ownership after an owner’s death. Holding a life insurance policy in a trust ensures that proceeds are managed for business continuity and are distributed according to agreed-upon terms. The trust’s distributions can be tailored to fund buyouts, compensate continuing owners, or support management and operational needs without forcing the sale of business assets during a difficult period. When business interests are involved, coordination between corporate documents, buy-sell agreements, and the ILIT is essential. The trust terms and beneficiary designations should align with the succession plan so proceeds are available where and when needed. Collaboration with financial advisors and accountants ensures that the trust structure supports the business transition while addressing tax and funding considerations.
When the insured dies, the life insurance proceeds are paid to the ILIT as the policy owner and beneficiary. The trustee then holds and administers those proceeds according to the trust terms, which may direct immediate lump-sum distributions, phased payments, or distributions for specific purposes such as education, healthcare, or maintenance. The trustee’s role includes managing funds prudently, keeping records, and communicating with beneficiaries about distribution processes and timelines. How quickly beneficiaries receive funds depends on the trust’s instructions, the insurer’s processing of the death claim, and any required estate administration steps. Properly drafted trust terms and timely trustee action help ensure efficient distribution. If the trust includes discretionary provisions or directed uses for the proceeds, the trustee will follow the trust language while acting in the beneficiaries’ best interests and in accordance with any fiduciary duties imposed by law.
The time required to create and fund an ILIT varies depending on factors such as whether an existing policy is being transferred or a new policy is being issued, the complexity of trust provisions, and coordination with other estate documents. Drafting the trust and executing documents can typically be completed in a matter of weeks, while transferring an existing policy may also require insurer processing time. Purchasing a new policy issued to the trust depends on underwriting timelines and premium payment arrangements, which can add additional weeks to the overall process. Funding and establishing an ongoing administration routine may require additional steps such as arranging annual gifts, setting up trustee bank accounts, and documenting premium transfers. To avoid unintended tax issues, clients should follow timing guidance and complete required gift documentation. We assist clients through each step to streamline the process and provide clear timelines so families know what to expect from initial consultation through funding and ongoing administration.
Criminal Defense
Homicide Defense
Manslaughter
Assault and Battery
Assault with a Deadly Weapon
Battery Causing Great Bodily Injury
Domestic Violence
Domestic Violence Protection Orders
Domestic Violence Restraining Order
Arson Defense
Weapons Charges
Illegal Firearm Possessions
Civil Harassment
Civil Harassment Restraining Orders
School Violence Restraining Orders
Violent Crimes Defense
Estate Planning Practice Areas