An Irrevocable Life Insurance Trust (ILIT) can be a powerful planning tool for people in Shingle Springs who want to manage life insurance proceeds outside of their taxable estate. This guide outlines how an ILIT works, the typical reasons families choose this approach, and what to expect when creating and funding a trust. At the Law Offices of Robert P. Bergman we help clients understand how an ILIT interacts with other estate planning documents such as pour-over wills, revocable living trusts, and powers of attorney, and we provide clear steps to implement a plan tailored to a client’s family, assets, and long-term goals.
Choosing to establish an ILIT involves decisions about trustees, beneficiaries, policy ownership, and funding. This guide explains common strategies used in California to protect life insurance proceeds from estate taxation while providing liquidity for survivors, paying estate expenses, or supporting long-term needs like education and care. We discuss how an ILIT coordinates with other trust tools such as irrevocable life insurance trusts, retirement plan trusts, and special needs or pet trusts, offering guidance on drafting trust provisions and ensuring proper administration to achieve the intended estate planning outcomes for families in Shingle Springs and surrounding areas.
An ILIT offers several practical benefits for individuals and families seeking to control how life insurance proceeds are handled after death. Properly drafted and funded, an ILIT keeps the death benefit out of the insured’s taxable estate, which may reduce estate tax exposure and preserve more assets for heirs. It also provides a framework for distributing proceeds according to the grantor’s wishes, allowing for tailored distributions, protections for minor or vulnerable beneficiaries, and the appointment of a trustee to manage funds on behalf of beneficiaries. For local families, an ILIT is often part of a broader plan that ensures financial stability and continuity.
The Law Offices of Robert P. Bergman serves clients in Shingle Springs, El Dorado County, and throughout California, providing thoughtful estate planning services that include trusts, wills, and related documents. Our approach focuses on listening to each client’s circumstances and creating practical plans that address family goals, tax considerations, and long-term asset management. We work closely with clients to explain legal options in clear terms, coordinate with financial and tax advisors when appropriate, and create documents such as revocable living trusts, pour-over wills, and powers of attorney to implement an integrated plan for asset protection and beneficiary care.
An ILIT is a trust designed to own and control a life insurance policy so that the policy’s death benefit is not included in the insured’s estate for estate tax purposes. Implementing an ILIT involves transferring ownership of an existing policy or having the trust acquire a new policy, naming the trust as beneficiary, and establishing clear trust provisions to govern distribution and administration. The trust is irrevocable, meaning the grantor cannot change or revoke the trust after it is funded, which is why proper planning and execution are essential. This structure can also protect proceeds from creditors and help ensure assets are used according to the grantor’s intentions.
Establishing an ILIT requires careful coordination to avoid unintended tax consequences or inclusion of the policy in the estate. Funding typically requires annual gifts to the trust to cover insurance premiums, and the trust must be structured so beneficiaries receive the intended benefits without triggering estate inclusion. Trustee selection, trust language about distributions, and administrative details like gift tax considerations and Crummey notices are important components. Our process includes reviewing financial circumstances, drafting trust provisions tailored to family needs, and guiding clients through the steps necessary for effective trust administration and compliance with applicable laws.
An Irrevocable Life Insurance Trust is a legal arrangement in which the trust holds ownership of a life insurance policy on the grantor’s life and specifies how proceeds should be handled after the insured dies. Because the trust is irrevocable, the policy proceeds are typically excluded from the grantor’s taxable estate, allowing beneficiaries to receive funds without estate tax inclusion under certain conditions. The trust document appoints a trustee to manage proceeds, set distribution terms, and handle administrative tasks. This structure also offers privacy and the ability to impose safeguards for beneficiaries who may be minors or have special needs.
Creating an ILIT involves several essential elements, including drafting the trust document, identifying a trustee, transferring or purchasing a life insurance policy in the name of the trust, and arranging funding to pay premiums. The trust should include provisions addressing distribution timing, conditions for payments, trustee powers, and procedures for administering the trust after the insured’s death. Administrative tasks may include providing beneficiaries notice of gifts, maintaining records of premium payments, and coordinating with the insurance company. Proper execution and ongoing administration are necessary to achieve tax and estate planning objectives and to ensure beneficiaries receive intended benefits.
Understanding common terms used in ILIT planning helps clients make informed decisions. Key concepts include grantor, trustee, beneficiary, irrevocability, premium funding, Crummey withdrawal notices, and estate inclusion rules. Each term has implications for how the trust operates, how gifts are made and reported, and what steps are necessary to preserve the intended tax and asset protection benefits. This glossary provides short definitions and practical notes to help you follow the drafting and administration process and to understand how an ILIT fits into an overall estate plan.
The grantor is the person who creates and funds the trust, transferring ownership of a life insurance policy or providing funds for premiums. In ILIT planning, the grantor typically establishes the trust with the goal of removing the insurance proceeds from their taxable estate. Because an ILIT is irrevocable, the grantor gives up control over the trust assets and the policy once the transfer is complete. Careful consideration of timing, gift tax rules, and the grantor’s broader estate plan is necessary before forming and funding an ILIT to ensure it aligns with overall objectives.
A beneficiary is a person or entity designated to receive trust distributions, including life insurance proceeds held by the ILIT. Beneficiaries can include spouses, children, grandchildren, charities, or other entities named in the trust document. The trust can set conditions for distributions, such as staggered payments, educational use, or support for a person with special needs. The trustee must follow the trust terms when making distributions and ensure that beneficiaries receive funds per the grantor’s intent while maintaining records and exercising fiduciary duties.
A trustee is the individual or institution appointed to manage the trust, hold legal title to the life insurance policy, and oversee distributions to beneficiaries according to the trust terms. Trustees handle administrative duties such as paying premiums, filing tax returns when necessary, maintaining trust records, and communicating with beneficiaries. Choosing a trustee involves balancing trustworthiness, administrative ability, and understanding of fiduciary responsibilities. The trustee’s role is essential to ensuring the trust operates smoothly and achieves the objectives set out by the grantor in the trust documentation.
A Crummey notice is a written notification to beneficiaries informing them of a gift made to the trust that they have a limited-time right to withdraw. These notices help qualify gifts for the annual gift tax exclusion by giving beneficiaries a present interest in the gift. Properly issuing Crummey notices and maintaining documentation can be important to prevent tax complications and to ensure that premium payments contributed to the ILIT qualify for the exclusion. The trust document should address notice procedures and withdrawal rights to maintain compliance and clarity for beneficiaries.
When evaluating ILITs against alternatives like keeping a policy in your revocable trust or naming individual beneficiaries directly, consider goals such as estate tax mitigation, creditor protection, and control over distributions. An ILIT typically removes the policy proceeds from the grantor’s estate but requires irreversibility and careful funding. Other strategies, such as retaining ownership in a revocable trust, may allow more flexibility but could leave proceeds subject to estate inclusion. Consulting about how different tools interact with retirement accounts, pour-over wills, and special needs planning is essential to determine which approach best aligns with your family’s long-term objectives.
For some families with uncomplicated financial situations, a direct beneficiary designation on a life insurance policy can provide an efficient way to transfer proceeds without establishing an ILIT. This approach avoids the complexity of funding and administering an irrevocable trust and can be adequate when estate tax exposure is minimal and there is no need for structured distributions. However, direct designations provide less control over how proceeds are used and may expose benefits to estate inclusion or creditor claims depending on how the policy is owned at death and the beneficiary’s circumstances.
Keeping a life insurance policy owned by a revocable living trust can offer flexibility during the policy owner’s lifetime while allowing for coordinated estate planning upon death. A revocable trust can be modified as circumstances change, making it a good option for those who expect future shifts in family dynamics or assets. That flexibility comes with trade-offs: because the trust is revocable, the insurance proceeds may be included in the taxable estate. For clients prioritizing control and adaptability over estate tax exclusion, this approach may be the appropriate choice.
Families with blended households, significant estates, or complex beneficiary needs often benefit from a comprehensive plan that integrates an ILIT with other trust arrangements and estate documents. Addressing how life insurance proceeds interact with retirement accounts, residential property, and other assets requires a coordinated approach to avoid unintended tax consequences and to ensure equitable distributions. Comprehensive planning can include measures for creditor protection, provisions for minors or individuals with special needs, and coordination with tax advisors to preserve family wealth and implement a durable plan for future contingencies.
An ILIT can be part of a broader strategy to provide long-term stewardship of insurance proceeds, appointing a trustee to manage funds on behalf of beneficiaries and setting distribution terms that address future needs like education, healthcare, or ongoing support. Comprehensive planning allows grantors to craft trust language that protects funds from creditor claims, provides structured distributions over time, and aligns with other tools such as special needs trusts or retirement plan trusts. This level of planning is useful for those seeking to preserve family wealth and ensure proceeds are managed responsibly after a death.
A comprehensive approach to estate planning that includes an ILIT can produce multiple benefits, including potential estate tax mitigation, clearer instructions for how proceeds should be used, and enhanced protection for beneficiaries. When trusts, wills, and beneficiary designations are coordinated, families gain a consistent plan that reduces the risk of conflicting documents, unintended beneficiary outcomes, and administrative delays. Coordinated planning also supports continuity by identifying trustees, guardianships, and decision-makers, ensuring that assets are managed effectively and in line with the grantor’s goals after a death or incapacity.
Beyond tax and distribution considerations, a well-coordinated plan helps families manage liquidity needs at the time of death, pay estate expenses without forced asset sales, and provide for dependents in a controlled manner. The integration of ILITs with other mechanisms like pour-over wills, revocable living trusts, and powers of attorney contributes to smoother administration and better alignment with family values and practical needs. Careful planning and clear documentation reduce uncertainty and provide a roadmap for trustees and beneficiaries when important decisions must be made.
One principal benefit of integrating an ILIT into a broader estate plan is reducing potential estate tax exposure by keeping life insurance proceeds outside of the taxable estate. Preserving these proceeds for intended beneficiaries allows families to meet financial needs without diminishing other inherited assets. A comprehensive plan considers timing, gift tax implications, and required documentation to maintain the desired tax treatment. When properly coordinated with retirement accounts, trusts, and wills, an ILIT supports efficient wealth transfer and helps maintain financial security for future generations.
An ILIT enables grantors to dictate how life insurance proceeds are used, providing protections that direct beneficiary payouts may not offer. The trust can require that proceeds be held and managed by a trustee, disbursed for certain purposes, or distributed over time to reduce the risk of rapid depletion. This structure helps protect funds from creditors, marital claims, or beneficiary mismanagement, preserving intended support for education, care, or other long-term needs. Including clear trust terms and trustee powers enhances the likelihood that proceeds will serve the family as intended.
Selecting the right trustee is one of the most important decisions when creating an ILIT. The trustee will be responsible for paying premiums when appropriate, managing any proceeds, and making distributions to beneficiaries under the trust terms. Consider a trustee who is trustworthy, organized, and capable of handling administrative and fiduciary responsibilities. An institutional co-trustee or professional trustee may provide continuity and administrative support, while a family member can provide personal knowledge of family dynamics. Discuss trustee roles and backup options during the planning process to avoid gaps in administration.
An ILIT should not be created in isolation. Coordinate the trust with existing documents such as revocable living trusts, pour-over wills, powers of attorney, advance health care directives, and beneficiary designations for retirement accounts. Consistency across documents reduces the risk of conflicting instructions and administration delays. Review and update the entire estate plan periodically or after major life changes, such as marriage, divorce, birth of children, or significant shifts in assets, to ensure the ILIT and related instruments continue to reflect current wishes and legal considerations.
Consider an ILIT if you want to keep life insurance proceeds out of your taxable estate, provide controlled distributions to beneficiaries, or protect insurance proceeds from creditors and claims against the estate. An ILIT can be particularly useful for those with larger estates, parents who want structured support for children over time, or individuals who wish to ensure funds are used for specific purposes such as education, long-term care, or charitable gifts. The decision involves weighing the benefits of estate tax planning against the loss of ownership control once the trust is funded.
You should also consider an ILIT when coordinating a broader estate plan that includes retirement plan trusts, special needs trusts, or other protective structures. The ILIT works best when it complements other arrangements, providing liquidity and designated funds without undermining beneficiary protections. For people with complicated financial situations or unique family dynamics, the ILIT adds certainty and predictability for how life insurance proceeds will be handled. A review of your assets and goals will help determine whether an ILIT is an appropriate component of your estate plan.
Typical situations where clients consider creating an ILIT include having a substantial life insurance policy and a desire to minimize estate tax exposure, wanting to provide structured distributions to minor children or beneficiaries with special needs, or needing to provide liquidity to pay estate taxes and expenses. An ILIT is also often used in conjunction with business succession planning or when the insured owns valuable assets that may be subject to creditor claims. Each situation benefits from a tailored trust document and funding strategy to ensure the intended outcomes are achieved.
When an estate approaches thresholds where estate tax concerns arise, an ILIT can be a useful tool to remove life insurance proceeds from taxable estate calculations. Establishing the trust and transferring ownership of a policy before death may reduce estate tax exposure, preserving more assets for heirs. The timing of transfers and the method of funding premiums matter, so advance planning and careful documentation are required. A properly administered ILIT can provide liquidity for estate tax obligations and help maintain the estate’s long-term value for beneficiaries.
Families with minor children or beneficiaries who require ongoing support often use an ILIT to set distribution rules and ensure that proceeds are available and managed responsibly. The trust allows the appointment of a trustee to oversee funds, set age-based or milestone-triggered distributions, and protect funds from premature depletion. For beneficiaries with special needs, the ILIT can be coordinated with special needs planning to provide supplemental support without interfering with public benefits. Clear trust provisions help trustees follow the grantor’s intent while safeguarding beneficiary interests.
Business owners may use an ILIT to provide liquidity for succession planning, buy-sell agreements, or to fund estate-related expenses that arise upon the death of an owner. Life insurance proceeds held in an ILIT can be structured to support a smooth transition of business interests or to provide funds to cover tax obligations without forcing asset sales. Coordination with business agreements and careful drafting of trust terms ensure proceeds serve the intended business and family objectives while preserving the overall estate plan’s integrity.
The Law Offices of Robert P. Bergman is available to help Shingle Springs residents evaluate whether an ILIT fits their estate plan. We provide guidance on trust drafting, trustee duties, funding strategies, and coordination with other documents such as revocable living trusts, pourover wills, and powers of attorney. Our goal is to ensure clients understand the implications of an ILIT and how it interacts with local California law so families can make decisions that align with long-term objectives and provide financial security for loved ones after a death.
Clients rely on the Law Offices of Robert P. Bergman for thorough estate planning assistance that covers the practical, legal, and administrative aspects of creating an ILIT. We emphasize clear communication, detailed document drafting, and careful attention to coordination across an overall estate plan. Our services include reviewing existing policies and estate documents, recommending funding approaches, preparing necessary trust language, and guiding trustees and beneficiaries through administration steps to help achieve the desired outcomes for families in Shingle Springs and throughout California.
We take a personalized approach to understanding each client’s financial picture, family structure, and long-term priorities. Whether the goal is to preserve wealth, provide structured support for beneficiaries, or create liquidity for estate needs, we craft trust provisions tailored to those aims. We also assist with practical tasks such as transferring policy ownership, coordinating Crummey notices when appropriate, and maintaining clear records to support the intended tax treatment and administrative flow of the ILIT.
Our office serves clients in Shingle Springs and nearby communities, offering straightforward guidance on ILIT formation and trust administration. We work collaboratively with financial advisors and tax professionals when necessary to ensure strategies align with broader financial objectives. From initial planning to trust funding and postmortem administration, we support families through each stage so the ILIT functions as intended and beneficiaries receive the protections and distributions specified in the trust.
Our process begins with a confidential discussion to review your financial picture, family considerations, and estate planning goals. We then analyze whether an ILIT is appropriate, coordinate with other planning documents, and outline steps for funding and administration. Drafting the trust document, arranging ownership transfers or new policies, and preparing any necessary notices are part of the implementation. We also provide guidance on trustee responsibilities and post-funding tasks to help ensure the ILIT achieves the intended legal and financial results for your beneficiaries.
During the initial phase, we gather detailed information about assets, existing policies, family needs, and long-term objectives. This step informs whether an ILIT is the best fit or whether alternative approaches may be more suitable. We discuss ownership transfers, funding methods, potential tax implications, and trustee selection. The goal is to develop a tailored plan that fits the client’s situation and address any concerns up front, providing a clear roadmap for drafting and implementing the trust with attention to California laws and administrative requirements.
A thorough review of your financial assets, existing life insurance policies, beneficiary designations, and family dynamics helps identify potential issues and opportunities. We consider estate size, creditor exposure, need for structured distributions, and any special circumstances such as beneficiaries with disabilities or blended family arrangements. This information guides the drafting process and ensures the ILIT’s provisions respond to real needs, helping prevent common pitfalls and aligning the trust terms with your long-term planning objectives.
We evaluate whether to transfer an existing policy into the ILIT or to have the trust acquire a new policy, and we discuss funding strategies for ongoing premium payments. This includes guidance on making gifts to the trust, issuance of Crummey notices when required, and documenting transfers to maintain the intended tax treatment. Our aim is to create a practical plan that balances administrative considerations with the benefits of estate tax mitigation and beneficiary protection.
Once the plan design is finalized, we draft the ILIT document with clear provisions on trustee powers, distribution standards, and administration procedures. We coordinate ownership changes with insurance carriers and prepare any ancillary documents such as gift letters or beneficiary confirmations. Execution of the trust involves signing, acceptance by a trustee, and steps to fund the trust. We ensure that the documents conform to applicable California requirements and reflect your objectives precisely to avoid ambiguity in future administration.
The trust document should define trustee powers to manage and invest proceeds, make distributions, and act in the beneficiaries’ best interests. Clear language about distribution triggers, permissible uses of funds, and successor trustee appointment reduces the risk of disputes and ensures continuity. We draft provisions tailored to the family’s needs, whether the goal is immediate distributions, staged payments, or preservation of funds for long-term care or education.
Transferring ownership of an existing policy or arranging for a new policy to be owned by the ILIT involves coordination with the insurance company to update ownership and beneficiary designations. We assist with paperwork and follow up to confirm the carrier’s records reflect the trust as owner and beneficiary. Proper documentation of the transfer and ongoing payment procedures is essential to achieve the intended estate planning results and to avoid the possibility of the policy’s proceeds being included in the taxable estate.
After the trust is executed and the policy is in the trust’s name, ongoing funding and administration are required. We advise on making premium gifts, issuing Crummey notices when applicable, and maintaining records of trust transactions. Periodic reviews are important to adapt the plan to changes in family circumstances, tax law, or asset holdings. Proper administration and documentation help preserve the intended tax treatment and ensure beneficiaries receive the trust benefits according to the plan.
Regular funding of premiums to the ILIT is necessary to keep the policy in force. Documenting gifts to the trust and issuing timely notices to beneficiaries when required supports the use of the annual gift tax exclusion. Accurate recordkeeping of contributions, premium payments, and any beneficiary communications helps maintain the trust’s integrity and defend its administration if questions arise in the future. We assist clients in establishing practical routines and documentation practices for ongoing trust maintenance.
An ILIT is not entirely set-and-forget; periodic reviews ensure the trust continues to meet changing needs, tax rules, and family circumstances. We offer follow-up consultations to review trustee actions, trust administration, and potential modifications in related estate documents. Trustee support, including guidance about distributions and recordkeeping, helps trustees fulfill their duties and ensures beneficiaries receive the intended protections and benefits as family circumstances evolve over time.
An Irrevocable Life Insurance Trust is a trust created to own a life insurance policy and to control how proceeds are handled after the insured dies. By placing the policy in an irrevocable trust, the death benefit is generally excluded from the insured’s taxable estate, assuming the transfer was completed sufficiently in advance of death and other legal requirements are satisfied. The trust names beneficiaries who will receive distributions according to the trust terms, and a trustee manages the policy and proceeds in accordance with those terms. People consider an ILIT when they want to provide liquidity for heirs, cover estate taxes and expenses, or control how insurance proceeds are distributed. The trust can also specify protections for beneficiaries who may be minors or otherwise need managed distributions. Because an ILIT is irrevocable, it requires careful planning around gifting, premium funding, and trustee selection to ensure the trust operates as intended and achieves the desired estate planning objectives.
Transferring a life insurance policy to an ILIT can help keep the policy’s death benefit out of the grantor’s estate for estate tax purposes, provided the transfer is completed following applicable rules and timeframes. If the grantor dies within three years of transferring an existing policy to the ILIT, certain estate inclusion rules may apply. For this reason, transfers and funding should be planned with attention to timing, gift tax issues, and documentation. The trust should be structured to hold the policy and provide for proper funding of premiums through gifts that may qualify for the annual gift tax exclusion. Maintaining records and issuing any required notices supports the intended tax treatment. Coordination with tax advisors and consistent administration are important to preserve the estate planning benefits of the ILIT.
Naming family members as trustees is common and can provide a trustee who understands family dynamics and the grantor’s intent. When choosing a family member trustee, consider their ability to manage administrative tasks, handle financial matters responsibly, and remain impartial in distributions to beneficiaries. It is also wise to appoint successor trustees or co-trustees to provide continuity if the primary trustee becomes unable to serve. Some families elect to include a professional or institutional co-trustee to support recordkeeping, investment oversight, and complex administration while keeping a trusted family member involved in decisions. Careful selection, clear trustee powers, and stated procedures in the trust document help trustees fulfill their duties and reduce potential conflicts among beneficiaries.
Crummey notices are written notifications provided to trust beneficiaries when a gift is made to the trust, informing them of a limited temporary right to withdraw that gift. These notices are important because they create a present interest in the gift, which can allow the gift to qualify for the annual gift tax exclusion for federal gift tax purposes. The notices should be timely, and records must show that beneficiaries were informed of their withdrawal rights. Properly handled Crummey procedures support the goal of funding premiums without incurring gift tax liability beyond exclusions. The trust document and administrative routine should explain how notices are issued, the length of withdrawal windows, and how lack of withdrawal is documented to maintain clarity and compliance with tax requirements.
Once a policy is owned by the ILIT, premiums typically come from gifts made by the grantor to the trust. The trustee uses those gifts to pay the insurance premiums and manage other trust expenses. Planning for consistent funding is essential to keep the policy in force and to avoid lapses that could defeat the purpose of the ILIT. Documentation of gifts and premium payments supports proper administration and any applicable tax treatment. Some clients use annual gifts that fall within the federal annual gift tax exclusion amount to fund premiums without incurring gift tax consequences, often accompanied by Crummey notices. In other cases, more complex funding strategies may be employed depending on the size of premiums and the grantor’s overall wealth. It is important to plan for contingencies and to maintain clear records of all contributions and payments.
An ILIT may offer protection from creditors for the proceeds held within the trust, depending on trust language and applicable law. Because the ILIT is irrevocable and the trustee holds legal title to the policy and proceeds, those funds are generally not accessible to creditors of the grantor after a properly completed transfer. However, protections can vary based on timing of transfers, state law, and specific creditor claims, so careful drafting and administration matter. Beneficiary creditors present different considerations: while trust terms can limit direct access by a beneficiary’s creditors, certain claims may still reach trust assets under some circumstances. A properly drafted ILIT with spendthrift provisions can reduce the risk that a beneficiary’s creditors will reach trust assets, but the degree of protection depends on the specific language and governing law.
An ILIT is often used alongside other estate planning tools, such as revocable living trusts and pour-over wills, to create a cohesive plan. While a revocable trust offers flexibility during the grantor’s lifetime, the ILIT’s irrevocable nature serves specific estate tax and asset protection purposes. Coordinating beneficiary designations and trust provisions prevents conflicts and ensures that each document supports the overall plan, such as designating the ILIT as owner and beneficiary of a policy while a revocable trust handles other assets. Coordination also involves aligning trustee powers, successor designations, and distribution strategies across documents. Regular reviews of the entire estate plan help maintain consistency and ensure that changes in family circumstances or law do not undermine the intended relationships between the ILIT and other estate planning instruments.
If the grantor dies shortly after transferring a policy to an ILIT, certain estate inclusion rules may apply that can cause the policy proceeds to be included in the grantor’s taxable estate. Federal rules include lookback periods that may bring transferred policies back into the estate if the grantor dies within a specified timeframe after the transfer. Proper planning involves understanding these timing rules and, when appropriate, structuring transfers well before a grantor’s expected time of death. Because of these timing considerations, it is important to plan transfers carefully and to coordinate with tax and financial advisors. In some situations, alternatives such as purchasing a policy within the ILIT from inception or making other arrangements can mitigate the risk of unintended inclusion in the estate when timing is a concern.
An ILIT can be a useful component of business succession planning by providing liquidity to fund buy-sell agreements or to provide cash to heirs who are not involved in the business. Holding life insurance in an ILIT helps ensure that proceeds are available to implement agreed-upon business transitions without creating estate tax exposure for the business owner’s estate. The trust can be drafted to align with partnership agreements or corporate buy-sell terms to facilitate a smooth transition. Coordination with business counsel and financial advisors is important to ensure the ILIT integrates with existing business agreements and ownership structures. Properly aligned documents help avoid unintended consequences, such as conflicts between corporate governance rules and trust distribution requirements, while achieving the goal of maintaining business continuity and providing fair value transfers.
Periodic review of an ILIT and related documents is recommended whenever there are major life events, such as births, deaths, marriages, divorces, changes in beneficiary circumstances, or significant asset shifts. Tax law changes and variations in family dynamics can also affect how the ILIT functions within an overall estate plan. Regular reviews help ensure the trust continues to meet the grantor’s objectives and remains coordinated with other documents like revocable trusts and beneficiary designations. Even without major events, an annual or biennial check-in can be helpful to confirm that premium funding, trustee administration, and recordkeeping are proceeding as planned. These reviews can uncover issues early, such as lapsed policies or changes in beneficiary needs, allowing adjustments in the broader estate plan while maintaining the integrity of the ILIT’s purpose.
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