An Irrevocable Life Insurance Trust (ILIT) can be a powerful component of a comprehensive estate plan for Calipatria residents who want to manage life insurance proceeds outside of their taxable estate. The Law Offices of Robert P. Bergman provides practical guidance on establishing and administering ILITs tailored to California law and local family circumstances. This page explains what an ILIT does, who may benefit, how it interacts with other estate planning documents like revocable living trusts and pour-over wills, and what to expect when creating or modifying an ILIT in Imperial County. We focus on clear planning steps and long-term stewardship of trust assets.
Deciding to form an ILIT involves careful coordination with existing estate planning tools such as a revocable living trust, beneficiary designations, and retirement plan trusts. For many families, an ILIT helps ensure life insurance proceeds are available for heirs without driving up estate tax exposure or creating probate complications. This introductory section describes the typical goals clients pursue with an ILIT, including liquidity for estate settlement, creditor protection for certain beneficiaries, and structured distributions for heirs with special needs or blended family concerns. We outline the initial consultation topics so you know which documents and financial statements to gather before meeting.
An ILIT offers a unique combination of control over life insurance proceeds and potential tax planning benefits when established correctly under California and federal rules. By transferring a life insurance policy or arranging for new coverage to be owned by the trust, policy proceeds can be kept outside a decedent’s gross taxable estate, provided timing and trust terms comply with relevant statutes. Beyond tax considerations, an ILIT can provide liquidity to pay estate obligations, instructions for distribution to beneficiaries, and provisions that protect proceeds from creditors or unintended spendthrift distributions. Crafting an ILIT requires attention to trust terms, premium funding methods, and integration with other estate documents.
The Law Offices of Robert P. Bergman assist clients throughout California with estate planning matters including trusts, wills, powers of attorney, and advanced planning techniques such as ILITs. Our approach emphasizes responsive client communication, personalized document drafting aligned with family goals, and careful attention to state law requirements. When working on an ILIT we review the client’s insurance policies, beneficiary designations, and overall asset structure to recommend a trust arrangement that fits their objectives. We coordinate with financial advisors and trustees as needed to ensure the trust functions as intended over the long term.
An ILIT is a trust designed specifically to own and control life insurance policies for the benefit of named beneficiaries. Once an ILIT is established and a policy is transferred into it or a policy is issued in the trust’s name, the grantor relinquishes ownership and certain rights over the policy. That irrevocability is essential to achieving the benefit of removing the policy’s death benefit from the grantor’s estate for tax and probate considerations. The trust document sets rules for premium payments, beneficiary distributions, trust administration, and successor trustee powers so that proceeds will be managed and distributed according to the grantor’s wishes.
Timing, gift-tax considerations, and the three-year rule under federal tax law are key technical issues when establishing an ILIT. If the grantor transfers an existing policy to the ILIT and dies within three years, the policy proceeds may still be included in the grantor’s estate. Premium funding methods—whether gifts to the trust, Crummey withdrawal powers, or other mechanisms—must be documented properly to qualify for annual gift tax exclusions. We explain funding strategies and trustee responsibilities so families can make informed choices without unintended tax or administrative consequences.
An Irrevocable Life Insurance Trust is a trust instrument that owns life insurance on a grantor so that the policy’s death benefit is controlled by trust terms and generally excluded from the grantor’s probate estate. The trust names beneficiaries who will receive income or principal under conditions set by the grantor. Typical objectives include providing liquidity for estate taxes or settled obligations, ensuring orderly distribution to heirs, and implementing protections for vulnerable beneficiaries. The trust must be properly drafted and administered to produce the intended benefits, including accurate beneficiary designations and clear instructions for premium payments and trustee powers.
Establishing an ILIT involves drafting the trust document, selecting a trustee, funding the trust with an existing policy or arranging for a new policy to be issued to the trust, and implementing a premium funding strategy. The trust should include distribution instructions, definitions of trustees’ authorities, contingencies for successor trustees, and provisions addressing tax and administrative reporting. Implementation also involves coordination with life insurance carriers to change ownership and beneficiaries as needed, and documenting any gifts to the trust that are intended to pay premiums so annual exclusion treatment can apply when appropriate.
Understanding common terms helps clients evaluate ILIT options and communicate effectively with advisers. This glossary provides plain-language definitions of legal and tax terms you are likely to encounter when creating and administering an ILIT, from trust funding mechanisms to trustee responsibilities. Familiarity with these concepts allows grantors and trustees to follow required notices, keep accurate records, and make decisions that preserve the trust’s intended benefits. Below are short definitions that will help demystify trust administration and align expectations about document preparation, funding, and ongoing trustee duties.
An irrevocable trust is a trust whose terms generally cannot be unilaterally changed or revoked by the grantor once the trust becomes effective. The grantor typically transfers property or establishes ownership of assets in the trust, and the trustee manages those assets for the benefit of the named beneficiaries under the trust’s terms. Irrevocability is a key feature for certain tax and asset-protection goals but also means the grantor relinquishes control over the assets held by the trust, so the decision should be made with full understanding of long-term implications.
A Crummey power is a limited withdrawal right often included in trust documents that allows trust beneficiaries a brief window to withdraw gifts contributed to the trust, thereby converting those contributions into present, gift-tax-excludable transfers. The trust must provide notice to beneficiaries of the withdrawal opportunity and the power must be exercised according to applicable law. Properly structured Crummey powers enable the grantor to make annual gifts to the trust that qualify for the federal annual gift tax exclusion while still keeping contributed funds available for trust purposes if beneficiaries do not exercise the withdrawal right.
The three-year rule refers to a federal tax provision that can include certain transferred assets back into a decedent’s gross estate if the decedent transferred ownership of those assets within three years of death. For life insurance policies moved into an ILIT, this rule means that if the grantor transfers an existing policy and dies within three years of the transfer, the death proceeds may still be included in the grantor’s estate. Careful planning, such as creating a new policy owned by the ILIT or timing transfers, helps avoid unintended tax consequences.
A trustee is the person or institution appointed to hold legal title to trust assets and administer the trust in accordance with its terms and applicable law. Trustee duties include managing investments, paying premiums, keeping records, providing beneficiary notices, and making distributions as directed by the trust instrument. Selecting a trustee who understands fiduciary responsibilities and is capable of practical administration is an important decision when creating an ILIT because trustees will carry out the grantor’s intended plan after the grantor’s death or incapacity.
Choosing between an ILIT and alternative approaches requires weighing tax, control, and administrative tradeoffs. Keeping a policy inside a revocable living trust may offer convenience during the grantor’s lifetime but could leave proceeds subject to estate inclusion and creditor claims. Naming individuals as beneficiaries without trust protection provides simplicity but lacks structured distribution controls. An ILIT adds a layer of management and protection but requires formal trust administration and possible gift-tax planning. We explain the typical scenarios where each option aligns with family goals and how each approach impacts liquidity, tax exposure, and beneficiary protections.
For individuals whose estate values are modest and whose life insurance policy benefits are relatively small compared to overall assets, simpler arrangements may be appropriate. Keeping a policy personally owned and designating beneficiaries directly can minimize administrative complexity and reduce ongoing trustee duties. When tax exposure is not a significant concern and the family’s distribution objectives are straightforward, families may prefer a streamlined plan that avoids creating a separate trust. However, even in smaller estates, it is prudent to confirm that beneficiary designations and retirement account arrangements align with overall wishes to avoid unintended outcomes.
When beneficiaries are trusted and family relationships are stable, a less formal arrangement might deliver the desired results without a trust. If beneficiaries are fiscally responsible and there are no concerns about creditor claims or special needs, direct beneficiary designations can simplify administration and speed distribution. That said, even in cooperative families, considerations such as minor beneficiaries, blended family dynamics, or creditor exposure could warrant additional protections. A careful review will determine whether a simple beneficiary designation achieves your objectives or whether an ILIT offers meaningful added value.
When families have complex assets, business interests, blended family relationships, or beneficiaries with special needs, a comprehensive estate plan that integrates an ILIT with other planning documents is often necessary. Coordinating beneficiary designations, trust terms, and funding strategies helps avoid conflicting provisions that could lead to disputes or unintended tax outcomes. Cross-checking retirement accounts, powers of attorney, and guardianship nominations ensures that the overall plan operates smoothly in life and at death, providing continuity and targeted protections for heirs under varying circumstances.
For clients concerned about estate tax exposure or the need for immediate liquidity to pay debts and expenses at death, integrating an ILIT with other planning tools can be beneficial. An ILIT structured to own life insurance can provide funds to pay taxes, executor fees, and settlement costs without forcing the sale of family assets. Coordinating this liquidity vehicle with tax planning strategies and trust distributions helps preserve the family’s long-term goals, protect asset value for intended beneficiaries, and reduce the risk of forced or unfavorable dispositions.
A coordinated approach that includes an ILIT alongside a revocable living trust, wills, powers of attorney, and other instruments creates a clear, enforceable plan for asset distribution and management. This approach reduces the likelihood of probate delays, helps ensure that life insurance proceeds are used as intended, and allows for targeted distribution provisions such as staged distributions, spendthrift protections, or provisions for beneficiaries with special needs. Comprehensive planning also reduces confusion for trustees and family members during difficult times by documenting the grantor’s wishes and the practical steps for carrying them out.
In addition to distribution and creditor protections, a comprehensive plan promotes continuity of decision-making by appointing durable powers of attorney and health care directives that work together with trust arrangements. Coordinated documents clarify successor trustee roles and streamline communications with financial institutions and insurance companies. This level of preparation can lower administration costs, reduce the risk of litigation, and ensure important assets like retirement accounts and life insurance are aligned with the grantor’s estate goals while providing peace of mind to family members who will serve in fiduciary roles.
An ILIT can help preserve asset value by providing readily available cash at the time of death to meet taxes and immediate expenses, reducing the need to liquidate portfolio holdings or real property under unfavorable conditions. When coordinated with other tax planning strategies, an ILIT may help reduce the taxable estate and provide structured distributions that reflect long‑term family goals. Proper administration and funding are necessary to realize these benefits, which is why clear documentation and trustee direction are vital components of a comprehensive plan tailored to California law.
Through trust terms, a grantor can control how insurance proceeds are used after death, including defining distributions for education, health care, or support, and protecting beneficiaries from creditor claims or imprudent spending. This control is particularly helpful for beneficiaries who are minor children, have special needs, or are otherwise vulnerable. The ILIT’s provisions can specify trustee discretion, distribution timing, and safeguards that reflect the grantor’s preferences, securing a thoughtful transfer of wealth that balances beneficiary needs with long-term preservation goals.
Before establishing an ILIT, gather existing estate planning documents, insurance policies, beneficiary designations, and retirement account information for a comprehensive review. This helps identify conflicts, timing issues, and funding gaps that can affect the ILIT’s effectiveness. Reviewing policies for ownership provisions, in-force values, and potential contestability concerns allows you to determine whether to transfer an existing policy to the trust or to obtain a new policy issued directly in the trust’s name. A thorough review also reveals whether beneficiary updates are needed to align with trust terms and your overall plan.
Select trustees who can manage the trust relationship impartially and follow the trust’s distribution directions. Trustees should understand their duties to maintain records, provide beneficiary notices, manage premium payments, and make distributions consistent with the trust instrument. Consider naming successor trustees and including guidance for trustee compensation and decision-making processes. If administrative complexity is a concern, you may consider a trusted professional or co-trustee arrangement to support family members while preserving trust objectives and continuity in administration.
Families consider an ILIT for several reasons, including protecting life insurance proceeds from inclusion in a taxable estate, providing liquidity to pay estate settlement costs, and implementing controlled distributions for heirs. An ILIT can be especially helpful when estate liquidity is needed to preserve business interests or real property that might otherwise be sold quickly. Additionally, an ILIT’s trust terms can address family dynamics by directing how proceeds are used, such as limiting distributions to specific purposes or staggering payments over time to safeguard inheritance for younger beneficiaries or those with special needs.
An ILIT is also useful for clients who want to reduce the potential for creditor claims against life insurance proceeds or to protect assets for beneficiaries who may be vulnerable to financial pressure. When combined with other tools like a revocable living trust, pour-over will, or retirement plan trust, an ILIT becomes part of a resilient plan that anticipates common post-death administration challenges. Proper drafting and funding are essential; without careful planning an ILIT may fail to deliver expected benefits, so timely review and documentation are important steps for interested clients.
Typical scenarios that prompt families to consider an ILIT include concerns about estate tax exposure, the need for funds to pay estate settlement costs, blended family planning where distribution controls are desired, and protection for beneficiaries who may have special needs or creditor concerns. Business owners often use ILITs to provide liquidity for succession planning or to equalize inheritances among heirs. Additionally, when clients hold substantial retirement accounts and other assets, an ILIT can be part of a strategy to manage tax and distribution outcomes predictably.
For estates with significant assets, an ILIT can be part of a broader plan to manage potential estate tax exposure and provide funds to pay taxes and debts without forcing the sale of family assets. By placing life insurance ownership outside the grantor’s estate, an ILIT can preserve value for intended beneficiaries and ensure continuity for businesses or real property holdings. Drafting an ILIT in coordination with other estate planning techniques helps address liquidity needs while reflecting long-term distribution goals and family governance concerns.
In blended family situations, an ILIT permits the grantor to direct life insurance proceeds in a manner that protects the interests of both current spouses and children from prior relationships. Trust terms can specify shares or conditions of distribution for different beneficiary groups, helping reduce conflict and ensuring that resources are allocated according to the grantor’s wishes. Clear instructions regarding trustee discretion and successor trustees provide continuity and reduce the likelihood of disputes after the grantor’s death.
When beneficiaries face special needs or have significant creditor exposure, an ILIT can provide protections by controlling distributions and preventing direct ownership of proceeds that could affect public benefits or be subject to claims. Trust provisions can stage distributions, require trustee oversight, or direct funds for particular purposes, reducing the risk that proceeds are lost to creditors or misused. This structured approach allows grantors to provide for vulnerable beneficiaries while preserving essential protections and dignity for recipients.
We provide ILIT planning and administration services to individuals and families in Calipatria and Imperial County, explaining California-specific rules and practical steps for funding and managing trusts. Our team helps clients gather necessary documents, assess policy ownership options, and implement premium funding strategies to preserve intended benefits. Whether you are creating an ILIT for the first time or reviewing an existing arrangement, we walk you through trustee selection, beneficiary coordination, and integration with your broader estate plan so the trust functions effectively in the context of your family’s needs.
The Law Offices of Robert P. Bergman offers practical, client-focused estate planning services tailored to California law and local considerations. We emphasize clear communication and careful document drafting so that trust provisions are understandable and enforceable. Clients working with us receive a thoughtful review of their financial and family circumstances, recommendations for trust structure and funding, and support in coordinating with insurance carriers and financial advisors. Our goal is to produce durable plans that align with each client’s objectives while minimizing administrative surprises.
When implementing an ILIT we assist with drafting trust language, preparing beneficiary change forms, advising on premium funding approaches, and documenting gifts and notices required for tax treatment. We also guide trustee selection and succession planning so there is continuity in administration. By coordinating an ILIT with wills, revocable trusts, and powers of attorney, we help clients create a cohesive estate plan that addresses immediate needs and long-term goals, reducing the likelihood of disputes and ensuring that resources will be used according to the client’s wishes.
Our representation includes practical checklists and guidance for trustees and beneficiaries to make administration straightforward. We provide clear instructions about recordkeeping, premium payments, and beneficiary communications, and we remain available to advise on amendments or trust administration matters as circumstances evolve. For clients with business interests, retirement accounts, or complex family dynamics, our comprehensive planning approach helps align multiple components of the estate plan so life insurance proceeds and other assets work together to achieve the family’s objectives.
Our process for forming an ILIT begins with a detailed consultation to understand your objectives, inventory your assets and policies, and review existing estate documents. We draft a trust tailored to your needs, coordinate any changes in policy ownership or beneficiary designations with carriers, and provide a funding strategy for premium payments. After the trust is executed, we supply the trustee with an administration checklist and guidance on recordkeeping, notices, and distributions. We remain available to assist when the trust requires amendment, when claims arise, or when successor trustees assume their roles.
The first step is an in-depth review of current estate planning documents, life insurance policies, retirement accounts, and family goals. We discuss your objectives for the ILIT, such as minimizing estate inclusion, providing liquidity, or protecting beneficiaries, and identify any timing or tax issues that must be addressed. This stage also includes a review of carrier rules for changing ownership and the likely administrative tasks for trustees so you can assess whether the ILIT structure fits your overall plan and family circumstances.
We catalog existing policies, including ownership, beneficiary designations, and any assignment documentation, to determine whether a transfer to an ILIT is practical or whether issuing a new policy in the trust’s name is preferable. Identifying in-force values, premium schedules, and policy restrictions helps outline funding needs and timing considerations, especially in light of rules that may affect estate inclusion. This inventory supports informed decisions about how to structure the trust and manage premium funding without unintended tax consequences.
During the initial phase we discuss the family’s distribution preferences, potential beneficiaries who may need protection, and practical trustee candidates. Choosing a trustee who can manage administrative duties and follow trust directions is essential for effective implementation. We provide guidance on naming successor trustees and detailing trustee powers and limitations so that the administration of the trust reflects the grantor’s preferences and provides a clear roadmap for future decision-making.
Once objectives are confirmed, we draft the ILIT document with clear funding and distribution provisions, coordinate execution formalities, and implement the chosen funding strategy. Funding may involve transferring an existing policy to the trust or arranging for a new policy to be issued in the trust’s name. We prepare any necessary assignments, beneficiary designation changes, and gift documentation to support premium funding and tax treatment. Accurate documentation at this stage helps ensure the ILIT functions as planned and preserves intended benefits.
We oversee execution of the trust instrument and assist with the administrative steps needed to transfer ownership of a policy to the trust or to obtain a new policy issued to the trust. This includes coordinating with insurance carriers, completing assignment forms, and receiving carrier confirmations. Properly documenting the transfer and updating carrier records helps prevent disputes and supports the trust’s intended treatment at the grantor’s death, subject to any timing rules that may apply.
A key administrative task is establishing a consistent method for paying premiums, whether through annual gifts to the trust, trust-held funds, or other arrangements. When annual gift exclusion treatment is part of the strategy, we document the use of withdrawal notice language and procedures to provide timely notices to beneficiaries. Maintaining records of gifts, notices, and trustee actions ensures that funding is traceable and that the trust’s administrative practices support the desired tax and control outcomes.
After the trust is in place, ongoing administration includes timely premium payments, accurate recordkeeping, beneficiary communications, and adherence to distribution instructions. Trustees should follow the trust’s reporting requirements and retain supporting documentation for gifts and premiums. Periodic reviews ensure that the trust continues to align with changing family circumstances, tax law developments, and insurance carrier policies. We provide trustee checklists and are available to assist with amendments, successor trustee transitions, and any required trust filings or beneficiary issues.
Trustees must keep detailed records of premium payments, gifts to the trust, notices given to beneficiaries, and any distributions made from the trust. Accurate documentation supports tax treatment and provides transparency for beneficiaries and advisors. We advise trustees on practical recordkeeping procedures, how to prepare routine reports for beneficiaries, and what documents should be retained in case of audits or disputes. Clear records facilitate smooth administration and help maintain the trust’s intended protections over time.
Life changes such as marriage, divorce, births, deaths, or significant asset changes may impact the ILIT or related estate planning documents. Periodic reviews ensure that the trust, beneficiary designations, and funding approach remain aligned with the grantor’s objectives and with current law. We encourage clients to schedule reviews after major life events and to coordinate updates across wills, revocable trusts, powers of attorney, and retirement plan beneficiary forms so the entire estate plan remains coherent and effective.
An Irrevocable Life Insurance Trust is a trust that owns a life insurance policy and controls the disposition of the death benefit according to the trust terms. When the trust owns the policy, the proceeds are payable to the trustee and distributed to beneficiaries as directed by the trust rather than passing directly to named individuals. The trust document sets out how premiums are funded, who may withdraw gifts if Crummey powers are used, and how distributions are handled to meet the grantor’s objectives. Proper formation and administration are key to achieving the intended benefits. The trust must be irrevocable, ownership must be transferred or the policy must be issued in the trust’s name, and funding must be documented. Trustees have obligations for recordkeeping and notices, and timing rules under tax law should be considered when transferring existing policies to avoid unintended estate inclusion.
Transferring a policy to an ILIT can remove the death benefit from your taxable estate, but this result depends on timing and compliance with tax rules. If you transfer ownership of an existing policy and die within three years of the transfer, federal tax rules may cause the proceeds to be included in your estate. To avoid this outcome, some clients choose to have a new policy issued in the trust’s name or ensure transfers occur well before any anticipated risk period. In addition to timing, proper funding and documentation are required. Trustees should keep accurate records of transfers and premium funding, and beneficiary designations must reflect the trust ownership. A coordinated approach helps maximize the likelihood that the insurance proceeds remain outside the taxable estate while meeting other planning goals.
Premiums can be funded through gifts to the trust made by the grantor, trust-held assets, or contributions from other sources. When annual gift-tax exclusion treatment is desired, the trust may include limited withdrawal rights for beneficiaries—commonly called Crummey powers—so that gifts are treated as present interests eligible for the exclusion. Notices and recordkeeping supporting these withdrawals must be maintained to substantiate gift-tax treatment. Selecting a sustainable funding method is essential for keeping a policy in force. Trustees must manage premium payments, maintain policy records, and coordinate with the grantor and financial advisors. Clear instructions in the trust and consistent administration reduce the risk that the policy lapses and ensure proceeds will be available for beneficiaries at the appropriate time.
A trustee should be someone who can fulfill administrative duties, act impartially, and follow the trust terms. This might be a trusted family member, a close friend with financial acumen, or a professional trustee. The decision should consider the complexity of the trust, the likelihood of sensitive distributions, and the need for continuity if circumstances change. Naming successor trustees and setting clear guidance for trustee powers makes transitions smoother and helps ensure consistent administration. Trustees must keep accurate records, provide beneficiary notices, make premium payments, and carry out distribution instructions. If a family member may face difficulty performing these tasks, consider a co-trustee arrangement or a professional fiduciary to share responsibilities. The right trustee choice balances personal knowledge of the family with the practical ability to manage trust operations effectively.
An ILIT can offer a measure of protection against creditors for life insurance proceeds by keeping the death benefit in trust rather than payable directly to beneficiaries as individuals. Trust terms can include spendthrift-type protections or limitations on distributions to reduce direct exposure. However, the level of protection depends on the trust terms, local law, and the timing of transfers. Assets transferred with fraudulent intent to avoid known creditors may still be subject to challenge. In divorce situations, courts may scrutinize transfers made to evade marital claims. An ILIT created in good faith as part of a broader estate plan is more likely to provide intended protections, but it is important to consider state family and marital property laws. Careful advice and proper documentation can reduce the risk that trust transfers are set aside in litigation.
If a grantor transfers an existing policy to an ILIT and dies within three years of the transfer, federal tax rules may cause the policy proceeds to be included in the grantor’s gross estate. This timing rule is designed to prevent the avoidance of estate inclusion merely by recent transfers of assets and is an important technical consideration in ILIT planning. To mitigate this risk, some clients opt to issue new policies in the trust’s name where feasible or to make transfers well before any elevated risk period. Even when the three-year rule applies, an ILIT still provides the trust structure for distribution and can be helpful for directing proceeds and protecting beneficiaries. Addressing timing with an adviser and documenting the rationale for transfers are important steps to reduce unexpected tax treatment and align the plan with overall estate objectives.
An ILIT is irrevocable by nature, so modifications after creation are limited compared with revocable trusts. However, certain trust provisions can allow for trustee flexibility or include mechanisms for decanting or modification under state law, where permissible. In some cases, courts may approve modifications to resolve ambiguities or address changed circumstances, and settlors can sometimes use established legal tools to adjust administrative details without altering core irrevocable provisions. Because changes may be difficult, it is important to draft an ILIT with foresight, naming successor trustees, specifying distribution contingencies, and including administrative powers that permit practical responses to evolving needs. Periodic review can identify issues early and guide the use of available legal options for adapting the trust when necessary.
An ILIT should be coordinated with a revocable living trust and pour-over will so that all estate planning documents work together. The revocable trust may hold other assets and control distribution plans, while the ILIT specifically governs life insurance proceeds. A pour-over will can direct any assets not already in trust into a revocable trust at death, creating a cohesive structure for asset management and distribution. Alignment of beneficiary designations with trust ownership is also essential to preventing conflicts between documents. Coordination reduces the risk of unintended distributions, overlapping beneficiary designations, or assets that bypass the grantor’s structured plan. Regular reviews ensure beneficiary designations, account titles, and trust terms remain consistent, while clear instructions help trustees and executors implement the plan efficiently and with minimal friction during administration.
For beneficiaries with disabilities or who receive public benefits, an ILIT can be tailored to avoid disrupting benefit eligibility while providing supplemental support. Trust terms can authorize distributions for specified purposes such as education, medical expenses, or housing without providing direct cash that might affect means-tested benefits. Coordinating the ILIT with a special needs trust or designing trust language to respect benefit rules requires careful drafting to ensure the beneficiary’s needs are met without jeopardizing essential supports. Because public benefits rules are complex and vary by program, it is important to coordinate ILIT provisions with counsel familiar with disability planning and public benefits interactions. Thoughtful drafting and trustee selection can deliver support to vulnerable beneficiaries while preserving their eligibility for necessary services and protecting long-term welfare.
To get started, prepare your existing estate planning documents, policy information, and a list of intended beneficiaries and potential trustees. Contact the Law Offices of Robert P. Bergman to schedule an initial consultation to discuss goals, review documents, and identify the most appropriate ILIT structure given your family and asset situation. During this meeting we will outline funding options, timing considerations, and preliminary drafting matters so you have a clear plan of action. After the consultation we will draft the trust tailored to your objectives, coordinate any necessary policy transfers or new policy procurement, and implement a funding plan for premiums. We provide guidance for trustees and help coordinate updates to wills and revocable trusts to ensure all documents work together smoothly for long‑term administration and beneficiary protection.
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