An Irrevocable Life Insurance Trust (ILIT) can be an effective estate planning tool for Bell Gardens residents seeking to protect life insurance proceeds from being included in a taxable estate and to clarify how those proceeds will be distributed. At the Law Offices of Robert P. Bergman we assist clients with the formation and funding of ILITs tailored to their family circumstances and financial goals. The process involves drafting trust documents, naming trustees and beneficiaries, and coordinating transfers or ownership of life insurance policies to ensure the trust functions as intended within California law and minimizes unintended tax or probate exposure.
Creating an ILIT requires careful attention to timing, trust language, and the manner in which a policy is transferred or purchased by the trust to avoid adverse tax consequences. Whether you are establishing a new policy owned by the trust or transferring an existing policy into trust ownership, we work with you to evaluate the impact on beneficiary distributions, cash flow, and long-term asset preservation. Our approach focuses on clear documents, transparent communication, and practical planning to protect your family’s financial legacy while accommodating evolving needs.
An ILIT helps remove life insurance proceeds from an individual’s estate, which can reduce estate tax exposure for higher‑value estates and preserve liquidity for heirs. Beyond tax considerations, an ILIT allows detailed control over how proceeds are distributed, whether in lump sums or staged payments, and can protect funds from creditor claims or beneficiary mismanagement when properly structured. For families in Bell Gardens and throughout California, an ILIT can complement trusts, wills, and advance planning documents to provide certainty and continuity after a policyholder’s death, and to ensure that the intended financial support reaches loved ones efficiently.
The Law Offices of Robert P. Bergman provides estate planning services to clients across San Jose and Los Angeles County, including Bell Gardens. Our office focuses on clear, practical estate planning documents such as ILITs, revocable living trusts, wills, powers of attorney, and health care directives. We take time to understand each client’s family dynamics, assets, and objectives, then craft tailored documents and funding strategies. We emphasize accessible guidance and steady communication so clients can make informed decisions about trust ownership, trustee selection, funding methods, and administration that reflect their wishes and protect beneficiaries.
An Irrevocable Life Insurance Trust is a trust designed to own and control life insurance policies outside of an individual’s estate. When drafted correctly, the trust becomes the owner and beneficiary of the policy, and proceeds paid at death pass to the trust rather than through probate. This arrangement can help reduce estate inclusion of the insurance proceeds and provide a structured means of distributing benefits to named beneficiaries. Establishing an ILIT requires careful drafting to comply with federal tax rules and California trust law, and typically involves coordination with financial advisors and life insurance carriers to fund the trust properly.
The ILIT process generally includes selecting trustees, drafting trust provisions about distributions and trustee powers, and addressing how premiums will be paid. Transfers of an existing policy to a trust may trigger a three-year inclusion rule, while policies purchased by the trust avoid that rule if ownership and insurable interest rules are satisfied. Trustees often manage premium payments, invest trust assets, and oversee beneficiary distributions according to the trust terms. Through thoughtful planning, an ILIT can provide certainty about how proceeds will be used to support family needs, pay debts, or fund other estate plan objectives.
An ILIT is a legal arrangement in which the trust holds ownership of a life insurance policy and receives the policy proceeds when the insured dies. Because the policy is owned by the trust rather than the insured, those proceeds are generally excluded from the insured’s taxable estate, provided federal tax rules are observed and timing requirements are respected. The trust document specifies who receives payments, whether distributions are immediate or staged, and how funds should be managed. Properly formed ILITs include provisions for premium payments, trustee powers, and successor trustees to ensure ongoing administration aligns with the grantor’s wishes.
Important elements of an ILIT include the trust agreement, trustee appointment, beneficiary designations, funding plan, and administrative provisions. The process often begins with a review of existing policies and financial needs, followed by drafting the trust, transferring or purchasing a policy in the trust’s name, and establishing a mechanism for premium payments, such as annual gifts to the trust. Trustees carry responsibilities for recordkeeping, premium payments, and distribution decisions. Throughout, coordination with life insurance carriers and careful attention to tax timing rules ensure the trust functions as intended and protects the policy proceeds for intended beneficiaries.
Understanding the specific terms used in ILIT planning helps clients make informed decisions. Common terms include grantor, trustee, beneficiary, crummey powers, gift tax considerations, and inclusion periods. Knowing these concepts clarifies how an ILIT interacts with lifetime gifting, annual exclusion gifts, and estate tax rules. A clear grasp of terminology assists in funding the trust correctly and in anticipating administrative duties. We explain these terms plainly so you can focus on decisions about beneficiary provisions, trustee selection, and the long‑term objectives that your trust should accomplish on behalf of your family.
The grantor is the person who creates the ILIT and transfers a life insurance policy or funds into it. As grantor, you set the trust terms and name trustees and beneficiaries. Once assets are placed in an ILIT, the grantor typically gives up direct control over the policy and its proceeds to ensure the trust remains outside the grantor’s taxable estate. The trust document should clearly state the grantor’s intentions for distributions, conditions for payments, and any powers retained or given to trustees to manage trust assets on behalf of beneficiaries.
A crummey withdrawal right is a temporary power given to beneficiaries that allows gifts made to the ILIT for premium payments to qualify for the annual gift tax exclusion. Beneficiaries are notified of a short window during which they could withdraw the gifted amount, even though they commonly do not exercise that right. Proper notice and documentation of crummey powers are essential to preserve annual exclusion treatment and to support the expected tax treatment of gifts used to pay premiums for the trust‑owned policy.
The trustee is the individual or institution responsible for administering the ILIT according to the trust document, including managing the life insurance policy, making premium payments, and distributing proceeds after the insured’s death. Trustee duties may involve recordkeeping, tax filings for the trust, investment decisions for trust assets, and communicating with beneficiaries. Selecting the right trustee involves considering reliability, financial management capability, and willingness to fulfill ongoing administrative responsibilities, and often includes naming successors in case a change is needed.
The inclusion period, commonly called the three‑year rule, refers to the tax rule that may include a transferred life insurance policy in the grantor’s taxable estate if the policy was transferred less than three years before the grantor’s death. To avoid this inclusion, many planners recommend that transfers occur well in advance of anticipated need, or that the trust directly purchases a policy. Awareness of the inclusion period is important when timing transfers to an ILIT so that the intended tax benefits are preserved for beneficiaries.
An ILIT complements other estate planning tools such as revocable living trusts, wills, and beneficiary designations, but serves a distinct purpose in managing life insurance proceeds. While revocable trusts allow flexible control during life, they do not remove assets from the taxable estate while the settlor retains ownership. Wills handle probate distribution but do not provide the tax or creditor protections an ILIT can offer for life insurance. Choosing between or coordinating these tools requires a careful look at asset values, family needs, and the timing of transfers or purchases to align with tax and administrative goals.
For individuals with modest estate values and relatively small life insurance policies, a simple beneficiary designation or a revocable trust may be sufficient without the need for an ILIT. If the life insurance proceeds are unlikely to trigger estate tax concerns and the family prefers straightforward access for beneficiaries, maintaining traditional ownership and beneficiary designations can reduce complexity. Even in these situations, thoughtful review of beneficiary designations and coordination with other estate documents can prevent unintended outcomes and ensure that proceeds reach designated heirs smoothly.
When the primary goal is immediate liquidity for funeral expenses or short‑term obligations, keeping a policy outside an ILIT and maintaining direct beneficiary designations can provide faster access to proceeds. Establishing an ILIT involves trust administration and long‑term commitments such as premium funding mechanisms. If planning horizons are brief or the insured expects to need flexibility in policy ownership and loans, a limited approach may better match those needs while still coordinating with other estate planning documents to prevent probate delays or contested beneficiary claims.
For estates with substantial assets, complex family situations, or potential estate tax exposure, a comprehensive strategy that includes an ILIT alongside trusts, wills, and powers of attorney is often necessary. Coordinated planning helps avoid unintended estate inclusion, conserves liquidity for expenses and taxes, and creates a clear framework for distributing assets over time. A full review of retirement accounts, property ownership, beneficiary designations, and insurance policies allows for integrated decisions that optimize the client’s objectives while addressing administrative and tax implications in California and under federal rules.
When beneficiaries include minors, individuals with disabilities, or those who may face creditor risks, combining an ILIT with other trust arrangements provides added protections and structured distributions. A comprehensive plan can include provisions for staged distributions, outright gifts, or direction to fund supplemental needs trusts, guardianship nominations, and legacy gifts. By aligning life insurance planning with broader estate documents, you can ensure that proceeds serve intended purposes such as education, health care, or long‑term support, while minimizing opportunities for confusion or conflict among heirs.
Combining an ILIT with a revocable living trust, wills, and advance directives can deliver coordinated benefits: the ILIT handles life insurance proceeds outside the taxable estate, the revocable trust manages other assets and avoids probate, and healthcare and financial powers of attorney address decisions while you are alive. This integrated approach reduces gaps, clarifies beneficiary intentions, and provides multiple layers of protection that address tax planning, family dynamics, and the orderly transfer of assets. It also allows for tailored solutions that reflect changing family circumstances over time.
A comprehensive plan also simplifies administration for successors and trustees by providing consistent instructions across documents. Trust provisions can coordinate with ILIT terms to provide liquidity, pay debts, and maintain ongoing support for beneficiaries. Clear trustee powers and successor nominations reduce the risk of disputes and facilitate smooth transitions. By planning ahead, families can preserve wealth for intended uses, protect beneficiaries from unintended consequences, and reduce the administrative burdens that can otherwise arise during the settlement of an estate.
An ILIT can help preserve estate value by keeping life insurance proceeds out of the decedent’s taxable estate when established and funded properly, which may reduce estate tax exposure and preserve assets for beneficiaries. When coordinated with gifting strategies and other trusts, an ILIT becomes part of a larger plan to shift wealth while meeting annual exclusion rules and avoiding unintended tax inclusion. Thoughtful funding methods and timing are essential to realize these advantages and to ensure that trustees can meet financial obligations without compromising the grantor’s intentions.
An ILIT offers a level of control over how proceeds are used, allowing the trust document to set conditions for distributions, spending standards, and protections that reduce creditor exposure for beneficiaries. When combined with other trust structures, an ILIT can ensure that proceeds are used for long‑term needs such as education, medical expenses, or ongoing care, and limit the risk of funds being dissipated quickly. This support helps families maintain financial stability after a loss and provides a legal framework that supports thoughtful stewardship of resources for future generations.
Begin ILIT planning well in advance to avoid timing pitfalls such as the three‑year inclusion rule and to allow for smooth transfers of existing policies or purchases by the trust. Early planning provides flexibility in choosing premium funding strategies and in coordinating beneficiary and trustee designations with other estate documents. Communication with financial advisors and life insurance carriers is important to align policy ownership changes, beneficiary designations, and premium payment sources so the ILIT functions as intended without unintended tax or administrative complications.
Select trustees who are willing and able to manage the responsibilities of an ILIT, including premium payments, recordkeeping, trust tax filings, and beneficiary communications. A trustee with organizational skills and financial awareness helps maintain the trust’s obligations and respond to insurer requirements. Consider naming successor trustees and including guidance on trustee compensation and limitations to ensure continuity. Proper trustee selection reduces the likelihood of missed premium payments or administrative errors that could jeopardize the policy or the trust’s objectives.
Consider an ILIT if you want to remove life insurance proceeds from your taxable estate, provide structured distributions after death, or protect proceeds from creditors and beneficiary mismanagement. An ILIT is particularly relevant for those with significant life insurance holdings, complex family dynamics, or the desire to ensure that insurance benefits are used according to long‑term intentions such as education funding or intergenerational wealth transfer. The trust can be combined with other estate planning tools to create a cohesive, efficient plan tailored to your goals and California law.
An ILIT may also make sense when beneficiaries include minors, those with special needs, or individuals who might face creditor claims, because it offers a way to control access and preserve funds for specific uses. Even for modest estates, an ILIT provides clarity about policy ownership and helps avoid unintended estate inclusion that can complicate settlement. Before deciding, review your existing policies, beneficiary designations, and estate documents so that an ILIT, if chosen, complements your overall planning objectives.
Situations that commonly lead clients to establish an ILIT include high net worth estates concerned with estate taxes, transfers to multiple generations, or a desire to ensure funds are used for specific purposes such as education or long‑term care. Life changes like marriage, divorce, the birth of children, or acquisition of sizable assets can trigger a review of life insurance ownership and prompt the creation of an ILIT. Additionally, when beneficiaries may lack financial maturity or face creditor exposure, an ILIT provides protective structure and distribution rules to preserve proceeds for intended uses.
When life insurance policies represent significant wealth that could increase the taxable estate, transferring ownership to an ILIT can reduce estate inclusion of those proceeds and help preserve assets for heirs. The decision requires careful consideration of federal inclusion rules, timing of transfers, and how premiums will be funded without creating unintended gift tax consequences. An ILIT is one of several tools that can help manage estate tax risk while ensuring that liquidity is available to satisfy debts and provide for beneficiaries as intended.
When beneficiaries are minors or have special needs, an ILIT combined with targeted trust provisions can provide for staged or managed distributions to meet ongoing needs while protecting assets from misuse. The trust can define distribution standards and name trustees who are tasked with financial stewardship on behalf of those beneficiaries. This structure helps ensure that proceeds are available for education, healthcare, and long‑term care while offering protections against premature depletion of funds for those who are not yet prepared to manage a large inheritance.
For clients with complex asset portfolios including business interests, real estate, or retirement accounts, an ILIT helps coordinate liquidity and distribution objectives so life insurance proceeds support the broader estate plan. The trust can provide necessary cash to pay estate taxes, debts, or buyout provisions without forcing the sale of illiquid assets. Integrating an ILIT with other documents and ownership structures reduces the risk of asset misalignment at death and helps preserve intended legacy plans across different asset classes.
The Law Offices of Robert P. Bergman serves clients in Bell Gardens, Los Angeles County, and across California, providing thoughtful estate planning services that include ILITs, revocable living trusts, wills, powers of attorney, and healthcare directives. We listen to each client’s priorities and design documents that reflect family needs and financial realities. Whether you require help creating a new trust, transferring an existing policy into trust ownership, or reviewing beneficiary designations, our office provides clear guidance and practical next steps to protect your wishes and support a smooth transition when life events occur.
Clients choose the Law Offices of Robert P. Bergman for responsive service, clear communication, and practical estate planning solutions tailored to California law. We prioritize understanding your family circumstances and long‑term objectives, then translate those goals into trust provisions, funding plans, and trustee instructions that work for your situation. Our process emphasizes straightforward explanations, careful drafting, and coordination with advisors so that the ILIT complements other estate planning documents while minimizing administrative burdens for your loved ones.
We provide step‑by‑step guidance through the ILIT process, including reviewing existing insurance policies, advising on funding strategies, preparing crummey notices when appropriate, and documenting trustee responsibilities. Our team helps you anticipate potential issues such as inclusion periods or gifting rules and recommends practical workarounds that align with your objectives. Throughout the engagement we focus on timely communication and thorough documentation so you and your family have confidence in how the trust will operate over time.
Our aim is to make ILIT planning approachable and effective, integrating the trust with your broader estate plan so beneficiaries receive intended benefits with minimal delay and confusion. We assist with trustee selection, successor nominations, and contingency planning to ensure continuity. By addressing administrative details in advance and documenting procedures clearly, we help reduce the risk of disputes and simplify settlement duties for those left to manage the estate after your passing.
Our process begins with an initial consultation to review your goals, existing policies, and family circumstances. We assess whether an ILIT fits your objectives, outline timing considerations, and recommend funding approaches. After you approve the plan, we prepare the trust document, coordinate with insurers for policy transfers or purchases, and provide templates for crummey notices if used. We remain available for trustee questions, periodic reviews, and adjustments needed to accommodate changes in your life or in applicable law, ensuring the trust continues to serve its purpose effectively.
The initial stage focuses on gathering information about your current life insurance policies, asset inventory, and family objectives. We review policy ownership, beneficiary designations, and any existing trusts to determine the right approach for an ILIT. This evaluation identifies whether a transfer or trust purchase is appropriate and highlights timing issues such as the three‑year rule. A thorough discovery ensures drafting reflects realistic funding methods and that trustees will have the resources needed to administer the trust over time.
During the client interview we discuss family dynamics, intended uses for insurance proceeds, and any concerns about taxes, creditor claims, or beneficiary needs. This assessment guides trust provisions such as distribution timing, conditions for payments, and trustee powers. Clear understanding of goals helps us tailor the ILIT to match expectations regarding flexibility and control, and informs decisions about funding sources, gifting strategies, and coordination with other estate planning tools to achieve a cohesive plan.
We collect and examine policy documents, ownership records, and beneficiary forms to determine the most effective method of placing a policy into trust ownership. This review identifies potential complications such as policy loans, surrender values, or terms affecting transferability. Evaluating the financial and contractual details up front prevents surprises and ensures the ILIT is funded in a way that meets both legal requirements and client objectives while maintaining clarity for trustees and beneficiaries.
Once goals and policy details are clear, we draft the ILIT document with provisions customized to your objectives, selecting appropriate distribution standards and trustee authorities. Simultaneously, we design a funding strategy that addresses premium payments, potential gift tax impacts, and whether a gift with crummey powers or direct purchase by the trust is preferred. We prepare all necessary notices and coordinate with insurers to effect transfers or establish new ownership, ensuring legal and administrative steps are properly documented.
The trust document includes instructions for managing premiums, powers for the trustee to invest and distribute funds, and successor trustee nominations. We include clear language to address distribution timing and protect proceeds from creditor claims where appropriate. Drafting is tailored to fit within the client’s overall estate plan and to provide trustees with the authority and guidance necessary to administer the trust in alignment with the grantor’s intentions.
Funding options are explained with a focus on tax implications and administrative practicality. We outline how annual exclusion gifts with crummey notices can supply premium funds, or how the trust may acquire a new policy. The plan includes documentation templates, recordkeeping practices, and advice on coordinating with financial institutions so that premium payments are reliable and the trust remains in good standing throughout the grantor’s life.
After the ILIT is established and funded, trustees must maintain records, make premium payments, provide crummey notices when applicable, and prepare trust tax filings. Our firm assists with trustee orientation, periodic reviews of trustee actions, and updates to trust documents if circumstances change. Regular reviews ensure the trust continues to align with estate objectives, adapts to new family situations, and complies with any changes in law that could affect the trust’s operation or tax treatment.
We provide trustees with guidance on best practices for recordkeeping, premium payment tracking, and beneficiary communications so the trust remains transparent and effective. Proper documentation supports tax positions, demonstrates compliance with notice requirements, and reduces the risk of disputes. Trustee support also includes assistance preparing trust tax returns and addressing insurer inquiries to ensure the trust and policy remain in good standing over time.
As life events occur or laws change, the ILIT and related documents may need updates. We recommend periodic reviews to confirm trustee arrangements, funding strategies, and beneficiary designations still reflect your intentions. If changes are necessary, we advise on the most appropriate steps—whether amending related estate documents, updating ancillary planning tools, or adjusting funding mechanisms—to preserve the trust’s benefits and ensure ongoing alignment with your family’s needs.
An Irrevocable Life Insurance Trust is a trust that holds ownership of a life insurance policy so that policy proceeds are paid to the trust beneficiaries rather than forming part of the insured’s probate estate. The trust document sets out who receives payments, how funds should be distributed, and the powers given to trustees for administration. Creating an ILIT can help preserve liquidity for heirs, provide structured distributions, and reduce the likelihood that life insurance proceeds will be included in the insured’s taxable estate, provided transfers and timing rules are properly observed. Deciding to form an ILIT involves evaluating your family circumstances, policy values, and overall estate plan. We assess whether a transfer or trust purchase is appropriate, review potential tax consequences, and recommend funding mechanisms. The objective is to align the trust with your goals for beneficiary support, creditor protection, and ease of administration so the policy proceeds are used as you intend while minimizing administrative complexity for those left to settle your affairs.
Transferring a life insurance policy into an ILIT can keep the death benefit outside of the insured’s taxable estate if the transfer is made and the insured survives the applicable inclusion period. This treatment can reduce estate tax exposure for estates that may otherwise be large enough to trigger federal estate tax concerns. Properly structured ILITs also provide clearer pathways for distributing proceeds without probate, which can speed access for beneficiaries and reduce settlement costs. The tax impact depends on timing, the nature of the transfer, and whether gifts used to fund premiums qualify for the annual exclusion. We review your policies and financial picture to design a funding and transfer plan that seeks to preserve intended tax benefits while addressing administrative realities, such as premium payments and trust recordkeeping requirements.
The three‑year inclusion rule refers to the tax provision that may include a transferred life insurance policy in the grantor’s estate if the transfer to the trust occurred less than three years before the grantor’s death. The rule is intended to prevent last‑minute transfers designed solely to avoid estate tax inclusion. To minimize the risk of inclusion, many choose to transfer policies well in advance or have the trust purchase a new policy, though each option has tradeoffs. When planning, we consider the timing of transfers in light of this rule and advise on strategies to mitigate inclusion risk. That may include retaining sufficient liquidity outside the trust to pay premiums, documenting transfer intent, and structuring gifts to the trust for premium funding in a way that supports favorable tax treatment and the client’s overall estate objectives.
Premiums for a trust‑owned policy are often funded through annual gifts to the ILIT that beneficiaries could withdraw for a short notice period, an arrangement known as a crummey power, which helps those gifts qualify for the annual gift tax exclusion. Alternatively, the trust can own a policy purchased with funds contributed by the grantor or with premiums paid directly by the trust using existing trust assets. The chosen method should balance tax impacts, administrative ease, and the donor’s cash flow capacity. Clear documentation and consistent recordkeeping of premium funding are important to preserve intended tax treatment and to provide trustees with a predictable means to maintain the policy. We help prepare notice templates, advise on gift amounts, and coordinate premium payment procedures with life insurers to reduce the risk of lapses or disputes.
The trustee of an ILIT should be someone reliable and capable of managing administrative tasks such as premium payments, recordkeeping, tax filings, and beneficiary communications. This can be a trusted family member, a professional trustee, or a corporate trustee, depending on the complexity of the trust and the trustee’s expected duties. Naming successor trustees and specifying trustee powers and compensation ensures continuity and clarity for future administration. When selecting a trustee, consider their willingness to serve, organizational skills, and ability to follow the trust’s instructions impartially. Trustees are charged with fiduciary responsibilities and should be able to maintain accurate records, provide notices to beneficiaries when required, and make sound decisions that align with the trust’s distribution standards and the grantor’s stated intentions.
Both transferring an existing policy into an ILIT and having the trust purchase a new policy are viable options, each with its advantages. Transferring an existing policy can be efficient if the policy has favorable terms and transfer does not trigger adverse tax consequences, but attention must be paid to the three‑year rule. Purchasing a policy inside the trust avoids the transfer timing issue but requires the trust to be able to qualify for and maintain the new policy. We evaluate the policy’s terms, cash value, loan status, and the insured’s health to recommend the best path. Our goal is to structure the ownership and premium funding so the trust remains viable, policy benefits are preserved, and beneficiary objectives are met without unnecessary tax or administrative complications.
Crummey powers are a mechanism used to allow beneficiaries a temporary right to withdraw gifts made to the ILIT so those gifts qualify for the annual gift tax exclusion. Beneficiaries receive written notice of this withdrawal right for a short period, and while they rarely exercise it, providing the notice is critical to maintain the gift’s excluded status. Properly implemented crummey procedures and documentation are key parts of funding strategies for ILIT premiums. Because IRS acceptance of crummey treatment depends on notice and demonstrable opportunity to withdraw, it is important to follow consistent procedures and maintain records. We prepare appropriate notices, advise on timing and amounts of gifts, and document the process so funding mechanisms satisfy tax requirements while serving the trust’s long‑term purposes.
An ILIT can be combined with other protective arrangements to address the needs of special needs beneficiaries or minors. The trust can include tailored distribution standards, trustee discretion for supplemental needs, and provisions that avoid disqualifying public benefits where necessary. Coordination with special needs trusts or other dedicated planning tools helps ensure life insurance proceeds support beneficiary needs without unintended impacts on benefit eligibility. When minor beneficiaries are involved, the ILIT can provide staged distributions or custodial provisions to prevent immediate full access to funds, while naming guardians and successor trustees to manage funds responsibly. We work to align trust terms with the family’s goals and applicable benefit rules so proceeds are preserved and used as intended.
An ILIT can limit direct beneficiary access to funds to ensure long‑term protection, but provisions may be drafted to allow for emergency distributions under defined circumstances. Trust terms commonly include standards for hardship distributions or trustee discretion to address urgent needs, while still protecting the principal from imprudent use. The balance between protection and access depends on the grantor’s priorities and the drafting of distribution standards in the trust document. Trustees have a duty to follow the trust terms and to act in beneficiaries’ best interests when considering emergency requests. Including clear conditions and examples of permissible emergency distributions helps trustees respond consistently and reduces disputes, so beneficiaries receive timely support when truly necessary without undermining the trust’s protective purpose.
Trustees of an ILIT must manage premium payments, maintain records of gifts and notices, file any required tax returns for the trust, and communicate with beneficiaries according to the trust terms. Trustees also handle interactions with the life insurance company, manage trust assets, and observe distribution standards. Good recordkeeping and timely premium payments are essential to avoid policy lapses and to preserve the trust’s intended benefits for beneficiaries. Ongoing trustee responsibilities may include providing annual accountings, issuing crummey notices when gifts are made, and overseeing investments held by the trust. Trustees should be prepared to work with legal and tax advisors to address filings and to ensure compliance with evolving legal requirements. Clear trustee instructions in the trust document reduce administrative friction and help maintain continuity over time.
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