An Irrevocable Life Insurance Trust (ILIT) can be an important part of a thoughtful estate plan in La Cañada Flintridge, helping individuals manage life insurance proceeds while addressing tax and beneficiary concerns. At the Law Offices of Robert P. Bergman, our work focuses on drafting and implementing ILITs that reflect each client’s goals, family dynamics, and financial picture. We discuss how an ILIT functions, the role of the trustee, and how proceeds are distributed. This introduction frames the options available and the practical steps to create an arrangement that aligns with your long-term planning objectives in California.
Choosing whether to use an ILIT involves understanding how it integrates with wills, revocable trusts, and beneficiary designations. Many clients want to protect life insurance benefits from estate taxation or to control distributions for heirs after death. Our approach is to review the client’s existing documents, identify gaps, and propose clear drafting strategies such as trust funding, trustee powers, and distribution guidelines. We explain state-specific considerations, potential pitfalls, and the timeline to set up an ILIT so families in La Cañada Flintridge can move forward with confidence and clarity about their financial legacy.
An ILIT offers several benefits for individuals who wish to manage life insurance proceeds outside of their taxable estate and to control how proceeds are used by beneficiaries. Beyond potential estate tax mitigation, an ILIT can provide creditor protection for trust assets and clarify distribution rules to avoid family disputes. Establishing an ILIT requires careful attention to funding mechanisms, trustee selection, and compliance with gifting rules, which affect how premiums are paid and documented. For many families, the ILIT becomes a reliable vehicle to preserve insurance benefits for intended uses such as mortgage protection, education funding, or business succession planning.
The Law Offices of Robert P. Bergman serves clients in La Cañada Flintridge and throughout California with practical estate planning services focused on clear drafting, thoughtful client communication, and careful attention to tax and fiduciary details. Our team reviews client goals, existing documents, and family needs to design tailored trust solutions, including ILITs, pour-over wills, and related supporting instruments. We prioritize plain-language explanations of trust mechanics and work closely with trustees and financial advisors to ensure funding and administration are carried out according to the client’s intentions and California law.
An Irrevocable Life Insurance Trust is a distinct legal entity that holds and controls a life insurance policy, with the policy proceeds payable to the trust upon the insured’s death. Because the trust is irrevocable, the policy and the resulting death benefit are generally kept outside of the insured’s probate estate, which can provide potential estate tax advantages and clarity for beneficiaries. Setting up an ILIT requires careful selection of trustees, properly titling the policy, and establishing gift strategies to cover premium payments, all of which must be documented to ensure the trust functions as intended under California and federal tax rules.
The ILIT structure affects how premiums are paid and how distributions are governed. Many clients use annual gifts to the trust or other funding arrangements to pay premiums, and those gifts are typically delivered in a manner that meets gift tax exclusion rules. The trust document should include directions for distributions, authority for the trustee to manage trust investments, and provisions for successor trustees. Proper administration after the insured’s death is equally important, since the trustee must manage proceeds with attention to creditor concerns, tax reporting, and the beneficiaries’ needs according to the trust terms.
An ILIT is a trust created to own and control a life insurance policy while removing the policy’s death benefit from the insured’s taxable estate. Key provisions usually address how premiums will be funded, whether the policy is acquired by the trust or assigned to it, and how proceeds will be distributed after the insured’s death. The trust typically names a trustee to administer the policy and the trust assets, and it contains spendthrift or distribution provisions to govern beneficiary access. Clarity in the trust document and diligent funding are essential to achieving the intended estate planning outcomes.
Successful ILIT planning includes drafting precise trust provisions, selecting trustees who will follow the settlor’s instructions, and establishing a reliable method for paying premiums to avoid unintended tax consequences. The process often includes transferring ownership of an existing policy into the trust or purchasing a new policy owned by the trust, documenting premium transfers, and maintaining consistent records. After the insured’s death, the trustee evaluates claims, collects proceeds, pays debts or taxes as needed, and follows the trust’s distribution plan to beneficiaries while complying with applicable reporting requirements.
Understanding the common terms associated with ILITs helps clients make informed decisions and follow the steps needed for correct implementation. Below are concise definitions of frequent terms, covering trust funding, trustee duties, gifting mechanics, and related documents such as pour-over wills and powers of attorney. Familiarity with these concepts reduces confusion during setup and administration, and it enables better conversations with trustees, financial advisors, and insurers to ensure that the ILIT performs as intended within the larger estate plan.
An irrevocable trust is a legal arrangement that generally cannot be changed or revoked by the person who created it after it is executed. Once assets like a life insurance policy are placed in an irrevocable trust, ownership transfers to the trust and the settlor gives up direct control over those assets. This structure is commonly used to remove assets from an estate for tax or creditor protection reasons. The trust document sets out the trustee’s authority, distribution rules, and instructions that will govern trust administration after funding and during the settlor’s lifetime and after death.
Trust funding refers to the process of transferring assets into a trust so that the trust becomes the legal owner. For an ILIT, funding may involve assigning an existing life insurance policy to the trust or having the trust purchase a new policy. Funding also covers the mechanism for paying premiums, which can include annual gifts to the trust or other planned contributions. Accurate documentation of each transfer and premium payment is essential to preserve the trust’s intended tax treatment and to ensure the trustee has the authority needed to manage the policy and trust assets.
A trustee is the individual or entity responsible for managing the trust assets in accordance with the trust document and applicable law. In an ILIT, the trustee oversees the life insurance policy, receives premium gifts, pays premiums on schedule, files any necessary tax returns, and makes distributions to beneficiaries according to the trust’s terms. Choosing a trustee involves considering reliability, availability, and the ability to handle financial and administrative responsibilities. The document typically names successor trustees to ensure continuity if the original trustee cannot serve.
The gift tax annual exclusion allows individuals to make tax-free gifts up to a specified amount each year to a single recipient without using lifetime gift tax exemptions. For ILITs, many clients use annual exclusion gifts to transfer funds that the trustee then uses to pay insurance premiums. To qualify, the gifts must be properly documented and, in many cases, beneficiaries must receive a timely written notice if Crummey withdrawal powers are used. Careful planning and recordkeeping help ensure that gifts intended for premium payments receive the desired tax treatment under federal rules.
Selecting the right mechanism for holding life insurance proceeds depends on goals such as tax planning, creditor protection, and control over distributions. Alternatives to an ILIT include naming beneficiaries directly, using a revocable living trust, or relying on payable-on-death designations. Each option has trade-offs: direct beneficiary designations provide simplicity but limited protection, while revocable trusts offer flexibility but may not shield proceeds from estate inclusion. An ILIT typically provides a higher level of control over proceeds and potential estate tax benefits, but it requires careful setup, funding, and administration to function properly.
In cases where the life insurance proceeds are intended for a single, financially stable beneficiary and estate tax exposure is minimal, maintaining a direct beneficiary designation may be adequate. This approach keeps administration simple, allows proceeds to pass quickly without probate, and involves minimal documentation. It may be suitable for smaller policies or for clients who do not need controlled distributions or creditor protection. Even with a straightforward designation, it is important to review beneficiary designations periodically and to coordinate them with other estate planning documents to prevent conflicting instructions.
A revocable living trust can consolidate management of various assets, including some coordination of death benefit distributions, and can be appropriate for those seeking centralized control without committing to irrevocable arrangements. While proceeds of a life insurance policy owned by the decedent at death may be included in the taxable estate, a revocable trust simplifies administration and can avoid probate for other assets. For clients whose primary concern is ease of administration and continuity, a revocable trust may satisfy goals without the additional steps needed to establish an ILIT.
When potential estate tax exposure is a concern or when clients seek creditor protection for beneficiaries, a carefully drafted ILIT can offer benefits that limited approaches do not provide. The trust can remove life insurance proceeds from the taxable estate if properly structured and funded, and it can include provisions that reduce access by creditors or minimize beneficiary mismanagement. Achieving these results requires careful drafting to address ownership, premium funding, and trustee authority, as well as coordinated administration to preserve the intended tax and protection outcomes.
Clients who want to dictate how life insurance proceeds are used after their death—for example, to support minors, fund education, or provide staged distributions to heirs—often prefer an ILIT for the degree of control it provides. The ILIT document can include detailed distribution standards and trustee powers that reflect family dynamics and long-term objectives. This level of control can preserve assets for intended purposes and reduce the risk of misallocation, while also ensuring the trustee has clear authority to manage investments and distributions consistent with the settlor’s wishes.
A comprehensive approach to life insurance planning using an ILIT can provide coordinated solutions addressing taxation, beneficiary protection, and continuity of financial support. Integrating the ILIT with other estate planning tools such as pour-over wills, powers of attorney, and healthcare directives ensures that the client’s intentions are reflected consistently across documents. This approach also supports clear trustee duties and funding plans, reducing the administrative burden for survivors and helping to ensure that life insurance benefits are applied as intended, whether for debt settlement, family support, or legacy gifts.
Comprehensive planning helps anticipate post-death administration challenges by specifying how proceeds should be invested and distributed, naming successor trustees, and setting dispute-resolution pathways. The process includes coordinating with financial and insurance advisors to document premium transfers and to ensure that policy ownership matches the trust’s structure. For families with blended members or specific distribution priorities, a comprehensive ILIT can provide consistent guidance for trustees and beneficiaries, helping to protect relationships and preserve the settlor’s financial legacy over time.
One important benefit of a well-structured ILIT is the potential to remove life insurance proceeds from the grantor’s taxable estate, which may reduce estate tax exposure for larger estates. Additionally, the ILIT can include provisions that limit beneficiary access and protect proceeds from certain creditor claims, depending on the circumstances and legal constraints. Achieving these outcomes requires careful planning around ownership transfer timing, funding methods, and precise trust language to ensure that the trust’s structure delivers the intended tax and protection advantages under current law.
A comprehensive ILIT allows the settlor to outline how proceeds should be used, including provisions for education, healthcare, debt repayment, or staged distributions that respond to beneficiaries’ needs. These distribution rules can reduce family conflict and provide a structured method for trustees to follow when making decisions. The trustee’s fiduciary duties require adherence to the trust terms, so clear drafting paired with careful trustee selection helps ensure that the settlor’s intentions are honored and that beneficiaries receive the intended protections and support.
When an ILIT is used to pay policy premiums, documenting each gift to the trust is essential. Keep written records of transfers, confirm whether Crummey withdrawal notices are needed for annual exclusion gifts, and coordinate with the insurer to ensure the trust is listed as the policy owner. Accurate documentation helps demonstrate that premium funding was properly executed and supports the intended estate and tax treatment. Regular reviews and retained records also simplify administration and provide clarity to trustees and beneficiaries after the insured’s death.
An ILIT should not exist in isolation; it works best when coordinated with other estate planning documents such as wills, revocable trusts, powers of attorney, and healthcare directives. Review beneficiary designations and beneficiary consistency across accounts to prevent unintended conflicts. Ensure pour-over wills and any successor documents refer to the trust structure where appropriate. Periodic reviews help adapt the ILIT to changes in family circumstances, tax law updates, and changes in insurance needs, keeping the plan aligned with your overall estate objectives.
Individuals may consider an ILIT when they want greater control over how life insurance proceeds are managed and distributed, to potentially reduce taxable estate exposure, or to protect proceeds from certain creditor claims. The ILIT can also provide structured distributions for beneficiaries, which can be especially helpful for younger heirs or for heirs who may not be financially prepared to manage a large lump sum. When these objectives align with personal and family goals, establishing an ILIT becomes a meaningful part of a comprehensive estate plan.
Other reasons to consider an ILIT include facilitating business succession planning, separating life insurance proceeds from probate administration, and creating a stable funding source for future family needs like education or long-term care. The decision to form an ILIT should follow a review of estate size, policy values, and family circumstances, as well as consideration of how premiums will be paid and documented. Proper coordination with advisors and careful drafting help ensure the ILIT achieves the desired outcomes without unintended complications.
Typical scenarios that lead families to consider an ILIT include substantial life insurance proceeds that could increase estate tax exposure, blended families needing tailored distribution instructions, or situations where the insured wants to provide ongoing financial support while limiting direct beneficiary control. Other circumstances include business owners seeking continuity plans, individuals wishing to protect proceeds from certain creditors, and families who prefer controlled or staged distributions for minors or vulnerable beneficiaries. Each scenario benefits from planning that aligns trust terms with the family’s priorities.
When life insurance proceeds are large relative to the estate, placing the policy in an ILIT can be a practical tool to address estate taxation and preserve assets for heirs. The trust may remove the proceeds from the grantor’s taxable estate if ownership transfer and funding steps are properly executed. For clients facing potential estate tax exposure, an ILIT should be considered alongside other planning options, keeping in mind timing rules and the need for precise documentation to support the intended tax treatment.
Blended families often have competing interests that require clear instructions to protect certain beneficiaries while also providing for a spouse or partner. An ILIT can be drafted to provide specific distribution rules, ensuring that principal or income flows to intended recipients in a controlled manner. This structure helps prevent disputes over insurance proceeds and balances the needs of current spouses, former spouses, children from prior relationships, and other intended heirs through thoughtful trust provisions that address long-term planning goals.
Clients concerned about potential creditor claims against beneficiaries may use an ILIT to add protective provisions and limit beneficiary access in ways consistent with legal constraints. While creditor protection depends on many factors, including the beneficiary’s jurisdiction and the trust terms, careful drafting can provide a measure of protection for trust assets. The ILIT’s distribution controls and spendthrift-like provisions can make it more difficult for creditors to reach trust assets, thereby preserving benefits for intended uses such as family support or education funding.
The Law Offices of Robert P. Bergman provides estate planning services tailored to the needs of individuals and families in La Cañada Flintridge and the surrounding Los Angeles County communities. We help clients evaluate whether an ILIT fits their overall plan, assist in drafting clear trust documents, and coordinate the administrative steps necessary to fund and maintain the trust. With attention to client communication and a focus on practical solutions, we guide clients through each stage from initial consultation to trust implementation and post-funding administration.
Clients select our firm for thorough planning and clear guidance when creating ILITs because we emphasize careful documentation and coordination with other estate planning tools. We take time to understand family dynamics and financial goals so that trust provisions reflect practical considerations, such as premium funding and trustee responsibilities. Our process includes a detailed review of existing policies, beneficiary designations, and related documents, followed by drafting that seeks to reduce ambiguity and simplify future administration for trustees and beneficiaries.
When implementing an ILIT, communication and coordination matter. We work with insurance carriers, financial advisors, and trustees to confirm ownership transfers and premium payment methods, and we provide written instructions that trustees can follow. That attention to administrative detail aims to avoid common pitfalls that could undermine the trust’s intended benefits. Clients receive plain-language explanations so they can make informed decisions and understand how each document component affects their estate plan and family legacy.
Our approach includes periodic reviews of the trust and related estate documents to ensure they remain aligned with changing laws, financial situations, and family circumstances. We assist with successor trustee provisions, coordination of pour-over wills, and documentation that supports tax and gifting strategies. For residents of La Cañada Flintridge seeking careful planning for life insurance assets, we provide steady guidance and practical drafting to help maintain the integrity of the overall estate plan.
Our process begins with a focused consultation to gather personal and financial information, followed by a review of existing policies and estate planning documents. We discuss your goals for the life insurance proceeds and recommend trust provisions, trustee selection options, and funding strategies. After drafting the ILIT and related instruments, we assist with signing and funding steps, including coordination with insurers and financial advisors. Post-implementation support includes guidance for trustees on premium payments, recordkeeping, and post-death administration to ensure the plan functions as intended.
The initial stage focuses on understanding the client’s objectives, family structure, policy details, and overall estate plan. We gather information about existing life insurance policies, beneficiary designations, and financial accounts that may interact with the ILIT. This step includes a discussion of potential tax implications, funding options for premiums, and the client’s preferences for distribution timing and conditions. Clear goals at the outset enable targeted drafting and efficient implementation of the ILIT tailored to the client’s specific circumstances in La Cañada Flintridge.
During the document review we verify the current policy ownership, beneficiary designations, and any existing estate planning instruments that could affect the ILIT’s operation. This careful review aims to identify conflicts or gaps that need to be addressed, such as inconsistent beneficiary designations or policies owned by the insured that should be assigned. Clear documentation helps determine whether a new policy purchase or assignment of an existing policy is the better path and informs the drafting of the trust’s funding provisions.
We discuss trustee selection criteria and funding preferences with the client, including whether annual exclusion gifts will pay premiums or whether other funding sources will be used. This discussion covers naming initial and successor trustees, clarifying trustee powers, and setting distribution standards to reflect family goals. Establishing these preferences early helps ensure the trust document aligns with the client’s intent and provides the trustee with clear authority to manage policy premiums and trust assets.
In the drafting and execution stage, we prepare the ILIT document along with supporting paperwork such as pour-over wills, powers of attorney, and beneficiary notices if needed. The trust document includes detailed instructions about premium funding, trustee powers, and distribution terms. Once the client reviews and approves the draft, we arrange for proper signing and notarization and coordinate any necessary assignments or ownership changes with the insurance company. This stage ensures the trust is legally effective and ready for funding.
Drafting includes clear language for premium payment mechanisms, trustee authority, distribution rules, and successor trustee provisions. Ancillary documents such as pour-over wills and powers of attorney are prepared to ensure overall estate plan coordination. Clear, well-organized documents make administration straightforward and reduce the chance of disputes by providing explicit guidance for trustees and beneficiaries. We also provide clients with instructions for premium funding and recordkeeping to support the trust’s intended tax and legal treatment.
After documents are finalized, we coordinate execution, notarization, and any policy assignments with the insurer. For existing policies, the change of ownership must be properly documented and recorded by the insurance company, and for new policies we ensure the trust is set up as the owner at issuance. We also confirm receipt of premium payments and help establish recordkeeping practices to document annual gifts used for premiums, preventing administrative errors that might affect the trust’s intended tax status.
The final stage focuses on funding the trust properly, ongoing administration, and managing post-death tasks. Funding includes regular premium payments and documentation of gifts. We provide trustees with guidance on recordkeeping and compliance obligations during the trust’s administration. After the insured’s death, we assist the trustee in filing claims, handling tax matters, and distributing proceeds according to the trust terms. Timely and organized administration preserves the integrity of the trust and helps beneficiaries receive the intended benefits.
We offer trustees practical guidance about maintaining accurate records of premium receipts, gifts, and disbursements, as well as how to manage investments within the trust. Good recordkeeping supports required tax filings and provides a clear trail for beneficiaries and any necessary fiduciary accounting. Trustees also benefit from written instructions regarding communication with beneficiaries, claiming proceeds, and preserving documentation for future administration and potential audits, ensuring the trust continues to operate as intended.
Following the insured’s death, the trustee files insurance claims, collects proceeds, and administers distributions according to the trust terms while addressing debts and tax reporting obligations. We assist trustees in navigating required filings, determining appropriate investments for trust funds, and coordinating distributions to beneficiaries. This support helps trustees satisfy their duties and reduces delays in providing financial support for intended uses, ensuring that the settlor’s wishes are carried out with care and legal compliance.
An Irrevocable Life Insurance Trust is a trust designed to own and control a life insurance policy so that the death benefit is payable to the trust rather than directly to named beneficiaries. With the trust as policy owner, the proceeds are distributed by the trustee according to the trust’s provisions, and the trust structure can help remove the death benefit from the insured’s taxable estate if properly implemented. The trust document will outline trustee powers, premium funding mechanisms, and distribution rules that determine how proceeds are managed and used after the insured’s death. Setting up an ILIT involves drafting the trust agreement, arranging ownership transfer or trust purchase of the policy, and establishing a clear plan for paying premiums. The trustee must administer the trust consistent with its terms and applicable law, maintaining records and communicating with beneficiaries. Because the trust is irrevocable, the settlor generally gives up direct control over the policy and its proceeds, so careful planning and coordination with financial advisors help ensure the ILIT functions as intended and aligns with the broader estate plan.
Funding an ILIT with annual gifts commonly relies on the federal gift tax annual exclusion, which allows an individual to give a set amount each year to a recipient without tax consequences. In practice, the insured makes annual gifts to the trust, which the trustee then uses to pay insurance premiums. When withdrawal powers are included in the trust (often called Crummey powers), beneficiaries are temporarily given a right to withdraw contributions, which helps qualify the gift for the annual exclusion if the notice requirements are followed. Accurate documentation of each gift is important to preserve the desired tax treatment. The trustee should maintain clear records of transfers and premium payments, and the settlor should consult with advisors about the interaction between annual exclusion limits and overall funding strategy. Coordination with the insurer and timely notices to beneficiaries help prevent administrative issues that could compromise the intended tax benefits.
An ILIT can provide a measure of protection for trust assets from certain creditor claims, depending on the trust terms, the timing of transfers, and the applicable law governing creditor access. When the trust holds the policy proceeds, beneficiaries do not own the proceeds directly, which may limit creditors’ ability to reach funds held in trust. However, creditor protection depends on many factors, such as state law, the beneficiary’s own legal circumstances, and how the trust is structured. To maximize protective effects, clients generally need to avoid transfers made with the intent to defraud creditors and should consult local counsel about state-specific rules. Thoughtful drafting that includes distribution controls and appropriate trustee powers, combined with prudent administration, can enhance the degree of protection available for beneficiaries, while remaining consistent with legal limitations and compliance obligations.
Transferring an existing policy into an ILIT requires care to preserve the trust’s intended tax treatment. Once the insured transfers ownership to the trust, the policy proceeds may be excluded from the insured’s taxable estate if certain conditions are satisfied and if a three-year survival period is observed for federal estate tax purposes. Documentation of the assignment and proper notification to the insurer are necessary to record the change in ownership and beneficiary designation for the policy. There may be practical considerations such as changes to premium payment arrangements and potential impacts on policy loans or riders. Before making a transfer, clients should review any potential consequences such as changes in insurability or policy terms and ensure that premium funding mechanisms are in place. Consulting with advisors helps ensure the transfer does not inadvertently undermine the trust’s goals.
Choosing a trustee for an ILIT involves balancing administrative capability, trustworthiness, and impartiality. A trustee must handle premium payments, keep accurate records, interface with the insurer, and make distribution decisions outlined in the trust document. Many clients select a trusted family member, a close friend with financial acumen, or a corporate trustee depending on the complexity of the trust and the need for professional administration. Naming successor trustees is important to ensure continuity if the initial trustee cannot serve. Clear instructions about trustee powers, compensation, and decision-making procedures reduce ambiguity and ease administration. Discussing trustee duties in advance with the chosen individual or entity helps confirm willingness and preparedness to fulfill the responsibilities when the time comes.
An ILIT can affect estate tax exposure by removing life insurance proceeds from the grantor’s estate when ownership transfer and funding steps meet legal requirements. Properly executed transfers and a demonstrated separation between the grantor and the trust are important for achieving the intended estate tax treatment. Additionally, the three-year rule under federal tax law may apply in certain situations, so timing is a relevant consideration. Estate tax outcomes depend on the size of the estate relative to applicable exemptions and on how the ILIT is structured within the broader plan. Clients should review projected estate values, policy amounts, and funding methods with advisors to understand how an ILIT may change their estate tax picture and to plan accordingly for compliance and documentation requirements.
The trustee’s administrative duties include maintaining accurate records of gifts and premium payments, ensuring timely payment of insurance premiums, filing required tax forms if applicable, and managing the trust’s assets after proceeds are received. Trustees must also communicate with beneficiaries, handle claims after the insured’s death, and follow the trust’s distribution instructions while acting in the beneficiaries’ best interests as required by fiduciary duties. Practical trustee tasks often involve coordinating with the insurance company, financial advisors, and legal counsel to ensure smooth administration. Trustees benefit from written instruction and an organized record of contributions and premium payments, which simplifies reporting and demonstrates that the trust has been managed according to the settlor’s directions and legal standards.
Because an ILIT is irrevocable, the trust terms generally cannot be changed or revoked by the settlor after execution, which means careful planning is important before establishment. In limited circumstances, modification may be possible through court procedures, trust decanting, or by the actions of trustees and beneficiaries, depending on state law and the trust’s language. However, such changes are typically complex and not guaranteed, which is why thorough initial drafting is preferred. Clients should consider future contingencies and include flexible trustee powers and successor trustee provisions where appropriate to handle changing circumstances. Periodic review of the overall estate plan helps ensure alignment with evolving needs, and alternative planning tools can be explored if future changes become necessary and are available under the law.
An ILIT should be coordinated with other estate planning documents such as wills, revocable trusts, powers of attorney, and healthcare directives to ensure consistent directions across the estate plan. For example, a pour-over will can direct any loose assets into a revocable trust, while the ILIT specifically governs the life insurance proceeds. Consistency between beneficiary designations and trust terms avoids unintended conflicts and ensures that insurance benefits pass according to the overall plan. Reviewing all estate documents together helps identify mismatches, such as beneficiary designations that conflict with trust objectives. Coordination with financial advisors and insurers further ensures ownership and beneficiary designations reflect the trust structure, reducing the risk of disputes or administrative delays when policy proceeds are paid to the trust.
Getting started with an ILIT in La Cañada Flintridge begins with an initial consultation to review life insurance policies, family circumstances, and estate planning goals. During that meeting, we discuss whether an ILIT aligns with the client’s objectives, examine funding options for premiums, and outline the trustee selection process. Bringing relevant policy documents and a summary of assets and beneficiaries speeds the evaluation and helps identify next steps for drafting and funding the trust. After the initial review, the process typically moves to drafting the trust document, coordinating any policy assignments or purchases, and setting up premium funding arrangements with clear documentation. We work with clients and trustees through execution, recordkeeping procedures, and post-funding administration so the ILIT functions as intended and integrates smoothly into the broader estate plan for the La Cañada Flintridge household.
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