An Irrevocable Life Insurance Trust (ILIT) can be a powerful component of an overall estate plan for Manhattan Beach residents seeking to manage life insurance proceeds outside of their taxable estate. This page explains what an ILIT does, how it can protect beneficiaries, and the general steps involved in creating and funding the trust. The Law Offices of Robert P. Bergman serves clients across California and can help with the documentation that moves life insurance proceeds into trust control, ensuring clarity for trustees and beneficiaries and aligning the arrangement with other estate planning instruments such as wills and powers of attorney.
Deciding whether an ILIT is appropriate involves reviewing personal financial goals, family needs, and tax considerations. An ILIT may reduce estate tax exposure for those with significant life insurance policies while providing structured distributions and creditor protection for beneficiaries. This section introduces common features of ILITs, including trustee responsibilities, beneficiary designations, and funding mechanisms. It also outlines how an ILIT coordinates with documents like a pour-over will, trust certification, and advance health care directives to create a cohesive plan for transferring assets and protecting legacy intentions for future generations.
An Irrevocable Life Insurance Trust offers several potential benefits, including clearer control over life insurance proceeds, potential estate tax mitigation, and organized distribution to beneficiaries over time. For families with significant life insurance policies, moving ownership into an ILIT can separate those proceeds from a grantor’s estate, which may help preserve more wealth for heirs. Additionally, an ILIT allows for tailored distribution terms to meet unique family circumstances, such as providing for minor children, supporting a dependent with special needs, or establishing guidelines for trust distributions to successors while protecting assets from creditors and claims against the estate.
The Law Offices of Robert P. Bergman offers estate planning services to clients throughout California, including Manhattan Beach. Our office focuses on creating practical, well-documented estate plans that reflect each client’s goals. We assist with drafting trusts, wills, powers of attorney, and health care directives, and we prepare the trust documents and transfer paperwork needed to fund an ILIT. We emphasize clear communication, careful document drafting, and hands-on guidance through every step to make sure trust instruments integrate effectively with retirement plans, beneficiary designations, and other key financial arrangements.
An Irrevocable Life Insurance Trust is a legal entity created to hold life insurance policies and receive death benefits outside of a grantor’s taxable estate. Once established and properly funded, the trust owns the policy or the policy proceeds, and a trustee manages distribution according to the trust terms. This arrangement can provide greater certainty about how proceeds are used, allow for staggered distributions, and potentially reduce estate tax exposure. Establishing an ILIT requires careful timing and documentation, especially regarding policy ownership transfers and gift tax considerations, to achieve the intended financial and protective outcomes.
Creating an ILIT involves selecting trustees and beneficiaries, drafting trust provisions tailored to family needs, funding the trust with an existing policy or purchasing a new policy in the trust’s name, and ensuring that transfers comply with tax and trust law. Trustees take on administrative responsibilities such as accepting policy ownership, making premium payments if applicable, and distributing benefits per the trust terms. Close coordination with financial institutions, life insurance carriers, and retirement plan administrators is often needed to ensure beneficiary designations and ownership records accurately reflect the trust arrangement and the grantor’s overall estate plan.
An ILIT is a trust created to own life insurance policies or receive the proceeds from policies upon the insured’s death. By transferring ownership of a policy to the trust or purchasing a policy in the trust’s name, the death benefit can be managed outside of the insured’s personal estate. The trust document defines how proceeds are held and distributed, whether in lump sums or over time, and can include provisions for tax planning, creditor protection, and beneficiary support. Proper funding and administration are essential to ensure the trust achieves its intended goals without unintended tax consequences.
Key elements of an ILIT include the trust agreement, trustee appointment, beneficiary designations, ownership transfer documentation, and premium funding strategy. The process generally begins with a consultation to identify goals and coordinate with existing estate documents, followed by drafting the trust instrument, executing necessary policy assignment forms, and updating records with the life insurance carrier. Trustees should be prepared to administer the trust by accepting ownership, handling any premium payments, and following the distribution rules set out in the trust. Attention to timing and compliance with gift and estate tax rules is essential throughout.
Understanding common terms related to ILITs helps clients make informed decisions. This glossary covers ownership transfer, grantor, trustee duties, beneficiary designations, funding mechanisms, and tax-related concepts. Knowing the meaning of these terms clarifies the roles and potential implications of trust administration, such as how transfers within three years of death may affect estate inclusion or how Crummey powers can allow beneficiaries limited withdrawal rights while qualifying gifts for annual exclusion. Clear definitions help people evaluate whether an ILIT aligns with their goals and coordinate it with trusts, wills, and health directives.
The grantor is the person who creates and funds the trust by transferring assets or creating provisions for policy ownership. In ILIT planning, the grantor usually transfers an existing life insurance policy to the trust or arranges for a new policy to be held by the trust. The grantor’s intent, timing of transfers, and continued relations to the policy influence tax treatment and trust administration. Drafting clear trust instructions and coordinating beneficiary designations are important tasks the grantor undertakes to ensure the ILIT functions as intended for the benefit of named beneficiaries.
The trustee is the person or institution appointed to manage the trust, accept ownership of the life insurance policy, make administrative decisions, and distribute proceeds according to the trust terms. Trustees must follow the trust instrument and act in the beneficiaries’ interests while handling paperwork with carriers and financial institutions. Trustees also are responsible for keeping records, filing any necessary tax forms, and communicating with beneficiaries about distributions. Choosing a trustee who will perform these duties reliably and transparently is an important decision in ILIT planning.
A Crummey power is a provision that gives beneficiaries a limited-time right to withdraw contributions to a trust, typically used to qualify gift transfers for the annual gift tax exclusion. When used in an ILIT, the grantor’s premium payments contributed to the trust can be treated as present interest gifts if beneficiaries receive proper notice and an opportunity to withdraw funds for a specified period. Implementing Crummey provisions requires clear documentation of notices, withdrawal windows, and consistent administration so the IRS recognizes the transfers as eligible for the annual exclusion.
The estate inclusion window refers to the period during which transfers of ownership or gifts may still be included in the grantor’s taxable estate, often tied to three-year lookback rules for certain transfers of life insurance policies. If a policy is transferred within a specified period before death, the proceeds may be included in the grantor’s estate. Proper planning takes this timing into account, sometimes initiating funding early or structuring policy purchases through the trust to avoid unintended inclusion. Advisors and trustees must be aware of timing rules to ensure the ILIT achieves its tax and estate planning goals.
When evaluating an ILIT against alternatives, consider how each option addresses control, tax exposure, and beneficiary protection. A straightforward beneficiary designation on a life insurance policy may be simple, but it leaves proceeds directly payable to named individuals without trust oversight. A revocable trust offers flexibility but does not remove proceeds from the taxable estate. An ILIT is designed to provide control and potential tax benefits, but it involves irrevocability and administrative steps. Choosing the right arrangement depends on family circumstances, policy size, and long-term objectives for asset distribution and protection.
If a life insurance policy is modest in size and beneficiaries are trusted adults who will manage proceeds responsibly, a simple beneficiary designation might be sufficient. This approach minimizes administrative burden and allows proceeds to transfer directly to named individuals without trust administration. For families with straightforward needs and low tax risk, avoiding the complexity of a trust can be appropriate. It’s important to review beneficiary forms regularly and confirm that designations align with the rest of the estate plan to prevent unintended outcomes at the time of death.
When overall estate values are well below federal and state taxable thresholds, the potential tax benefits of an ILIT may not justify the additional complexity. In such cases, maintaining straightforward arrangements for life insurance with up-to-date beneficiary designations and complementary documents like a will and powers of attorney can efficiently address heirs’ needs. However, even without significant tax exposure, families should consider whether they want the added protections and distribution control a trust offers when planning for contingencies and long-term financial management for beneficiaries.
An ILIT can be especially relevant for those with sizable life insurance policies whose proceeds could increase estate tax exposure or lead to disputes among heirs. For individuals seeking controlled distributions, creditor protection, or provisions for beneficiaries who cannot manage large sums, a trust-based approach creates a framework for orderly administration. Careful coordination with retirement accounts, wills, and other trusts helps ensure that life insurance benefits achieve intended financial security and legacy preservation goals for multiple generations.
When family dynamics include blended family concerns, beneficiaries with special needs, or potential creditor exposure, the structured oversight of an ILIT can be beneficial. A trust allows tailored distribution terms, conditions for payouts, and mechanisms to protect assets from claims or mismanagement. For grantors with multiple advisors, business interests, or complex retirement arrangements, integrating an ILIT with broader estate planning documents reduces the risk of inconsistent beneficiary designations or unintended estate inclusion and helps ensure the grantor’s wishes are carried out reliably.
A comprehensive approach that includes an ILIT and coordinating documents such as a pour-over will, powers of attorney, and healthcare directives provides a cohesive plan for asset transfer and decision-making. This approach can streamline administration, reduce confusion for surviving family members, and provide mechanisms to manage distributions over time. Trustees can be empowered to make decisions that align with long-term goals, ensure premium payments for policies held in trust are handled, and preserve the value of life insurance proceeds by keeping them out of the grantor’s taxable estate where appropriate.
By integrating the ILIT with other trust-based planning tools, families gain the benefits of centralized documentation and coordinated beneficiary designations that reduce the likelihood of conflicting instructions. A combined plan also helps account for contingencies such as incapacity, changes in family circumstances, and evolving tax landscapes. Working through a single, consistent plan makes transition smoother for heirs and reduces administrative uncertainty, while giving the grantor confidence that their financial and caregiving intentions will be honored in the years ahead.
A properly funded ILIT can remove life insurance proceeds from an individual’s taxable estate, which may reduce estate tax exposure for larger estates. Trust terms can also specify how and when beneficiaries receive funds, whether in installments, for education, or for ongoing support. This structure can help preserve family wealth and deliver benefits in a manner consistent with the grantor’s wishes. Ensuring the ILIT is integrated with retirement plans, wills, and trust certifications enhances the effectiveness of distribution plans and minimizes unintended tax or administrative complications.
Trust ownership of life insurance proceeds offers a degree of protection from creditors and from the beneficiaries’ personal financial decisions by placing clear trust rules around distributions. Trustees can manage payouts to meet ongoing needs and enforce conditions that preserve capital for long-term family objectives. The trust structure supports continuity of financial management over time, enabling terms that accommodate changes in beneficiaries’ circumstances while ensuring the grantor’s goals for how proceeds should be used are maintained for future generations.
When creating an ILIT, ensure that ownership records and beneficiary designations with your life insurance carrier reflect the trust arrangement. Failing to update carrier records or leaving a policy beneficiary unchanged can result in proceeds bypassing the trust and undermining the plan. Document transfers and request confirmation from the insurer that the trust is listed as owner and beneficiary as intended. Keep copies of assignment forms and correspondence, and review these records periodically to verify continued accuracy as personal circumstances and policies evolve.
Timing matters in ILIT planning. Transfers of an existing policy may be subject to a three-year lookback or other estate inclusion rules that could affect tax treatment. Work with advisors to evaluate timing options, document transfers properly, and consider purchasing a policy directly in the trust when appropriate to avoid inclusion issues. Regularly review the trust’s terms and administration approach to remain aligned with current tax rules and to address changes in family situations, financial circumstances, or policy features that could affect the plan’s effectiveness.
People often consider an ILIT when they want greater control over life insurance proceeds, to reduce possible estate tax exposure, or to protect assets for beneficiaries who may need structured distributions. An ILIT allows grantors to define distribution timing, set conditions for payouts, and delegate administration to a trustee who will follow the trust’s terms. This approach can be helpful for families aiming to preserve wealth across generations, provide for minor children or dependents with special needs, or shield proceeds from creditor claims and personal liabilities that might otherwise affect the beneficiaries’ inheritances.
An ILIT may also serve planning goals related to business succession, charitable giving, or preserving liquidity to pay estate-related obligations without subjecting proceeds to probate. Combining an ILIT with other estate planning instruments such as a pour-over will, financial powers of attorney, and healthcare directives creates a more complete plan for managing assets and decisions during life and after death. Careful coordination ensures beneficiary designations and policy ownership align with overall objectives, reducing the risk of inconsistent outcomes for heirs and beneficiaries.
Individuals frequently choose an ILIT when they have large life insurance policies, blended family dynamics, or beneficiaries who may require financial oversight. Those concerned about estate taxes or seeking to protect proceeds from creditors or divorce settlements may find an ILIT aligns with their planning needs. Business owners who want to fund buy-sell agreements or ensure liquidity for estate settlement also use ILITs. Each situation requires tailored drafting to balance control, tax considerations, and the practical administration of trust-owned policies to meet long-term objectives.
When life insurance proceeds are large enough to affect estate tax calculations, an ILIT can help remove those proceeds from the grantor’s taxable estate if properly funded and administered. This can preserve more assets for heirs by potentially reducing estate tax liability and allowing structured distributions under the trust’s terms. Planning must include consideration of timing rules and possible lookback periods, as well as coordination with other estate planning tools and retirement accounts to maximize the intended tax and distribution benefits.
Grantors concerned about leaving assets to minor children or beneficiaries who may not be ready to manage large sums can use an ILIT to create controlled distribution schedules and safeguards. The trust can specify age-based releases, education funding provisions, or ongoing support payments, providing a framework that balances immediate needs with long-term protection. Trustees administer distributions according to the trust, reducing the risk of mismanagement and helping ensure that funds are used as intended for beneficiaries’ welfare and financial stability.
A trust can provide a barrier between life insurance proceeds and creditors or divorce claims in some circumstances, depending on state law and the trust’s terms. Placing ownership in an ILIT can distance proceeds from a grantor’s personal assets and create distribution rules that limit direct access by beneficiaries subject to creditors or marital disputes. While no arrangement provides absolute protection in every scenario, carefully drafted trust provisions and prudent administration can significantly reduce exposure and help preserve intended legacy transfers.
The Law Offices of Robert P. Bergman provides estate planning services to residents of Manhattan Beach and the surrounding Los Angeles County communities. We assist with trusts, wills, powers of attorney, and health care directives, and we guide clients through setting up and funding life insurance trusts when appropriate. Our approach focuses on clear documentation and reliable administration so families have a plan they can trust. Contact our office by phone at 408-528-2827 to discuss how an ILIT might fit into your overall estate plan and to schedule a consultation tailored to your circumstances.
Clients work with our office because we deliver thorough, practical estate planning solutions that reflect each family’s needs. We help draft trust documents, coordinate beneficiary designations, and prepare the assignments and funding steps necessary to establish an ILIT. Our process includes clear communication about trustee responsibilities, funding mechanics, and tax implications so clients understand how the trust will function. We emphasize careful drafting and attentive administration to reduce risk and promote smooth outcomes for beneficiaries.
We also assist clients in integrating ILITs with related estate planning instruments such as pour-over wills, revocable living trusts, and advance health care directives. This comprehensive coordination helps prevent conflicting beneficiary designations and ensures that life insurance benefits are distributed according to the grantor’s overall intentions. From preparing a certification of trust to advising on premium funding mechanisms, our office focuses on practical steps that protect family interests and support orderly transfers of wealth.
Our firm makes administration straightforward for trustees and beneficiaries by providing clear trust documents, drafting notice templates for Crummey powers where applicable, and assisting with recordkeeping needs. We help clients anticipate common issues, document transfers properly, and work with carriers to confirm ownership changes so that the ILIT functions as intended. Whether clients are starting an ILIT or modifying existing documents, our approach is designed to achieve clarity and durability across changing family and financial circumstances.
Our process begins with an in-depth discussion to understand family needs, policy details, and estate objectives. We then draft trust documents tailored to those goals, prepare necessary assignment forms or applications with the insurer, and coordinate funding steps while explaining timing and tax considerations. After execution, we assist with trust administration matters such as trustee duties, recordkeeping, and notices to beneficiaries. The goal is to provide a clear, manageable path to establishing an ILIT and maintaining it in alignment with the client’s overall estate plan.
The first step is a consultation to review your current estate documents, life insurance policies, and financial goals. We gather details about policy ownership, beneficiaries, and family circumstances to evaluate whether an ILIT is appropriate. During this meeting we discuss timing considerations, funding options, trustee selection, and how the ILIT will coordinate with wills, revocable trusts, and powers of attorney. This foundational planning ensures that the trust document will reflect your intentions and that subsequent steps proceed smoothly and in proper sequence.
We carefully review existing estate planning documents and policy records to identify any conflicts or necessary updates. This includes examining beneficiary designations, retirement account instructions, and previously drafted trusts or wills. Understanding current documents helps us design an ILIT that aligns with broader estate planning goals and avoids unintended overlaps. We also assess timing and tax implications of funding options to ensure the trust will achieve the desired results while minimizing possible adverse effects linked to recent transfers or policy changes.
Selecting a trustee who will carry out trust administration is an important decision, and we discuss trustee roles and potential candidates during planning. Based on your goals, we draft trust provisions that specify distribution terms, trustee powers, and administrative procedures including notice requirements and recordkeeping responsibilities. Clear provisions for trustee actions and beneficiary rights help ensure the trust functions predictably and reduces the likelihood of disputes or administrative gaps after the grantor’s passing.
Once the trust is drafted, we arrange for proper execution of trust documents and coordinate with the life insurance carrier for policy assignment or issuance in the trust’s name. If transferring an existing policy, we prepare assignment forms and confirm acceptance by the insurer. If the trust will purchase a new policy, we coordinate application processes and trustee acceptance. We also address premium funding through gifts to the trust or other mechanisms and document the transfer steps to preserve the trust’s intended tax and administrative treatment.
Coordinating with the insurance carrier is essential to confirm ownership changes and beneficiary designations. We prepare and submit the necessary assignment forms, request written confirmation of ownership changes, and ensure policy records reflect the trust as owner or beneficiary as intended. Confirmations from the carrier help prevent proceeds from paying to individuals rather than into the trust and protect the integrity of the estate plan. Keeping documented proof of the carrier’s acceptance is a key part of a successful funding process.
When grantors make gifts to the trust to cover premiums, documenting those gifts and sending timely Crummey notices to beneficiaries is important for qualifying transfers for the annual gift tax exclusion. We prepare notice templates and establish recordkeeping practices so trustees can demonstrate compliance with notice requirements. Proper documentation supports favorable tax treatment and reduces uncertainty related to gift exclusion claims, helping the ILIT function as intended without triggering unintended tax consequences.
After the trust is funded, trustees have ongoing duties such as making premium payments when applicable, maintaining records, sending beneficiary notices, and following the trust terms for distributions. Periodic reviews are recommended to ensure the trust continues to align with changing family circumstances, policy changes, or shifts in tax law. We provide support for trustees and beneficiaries, assist with amendments that do not alter irrevocable terms where permitted, and help implement modifications through appropriate legal processes when circumstances warrant changes in administration.
Trustees often need guidance to fulfill their duties effectively, including maintaining accurate records of premium payments, beneficiary communications, and distributions. We help trustees establish reporting routines and provide document templates to track trust activity. Accurate reporting and transparent communication with beneficiaries reduce the potential for disputes and help ensure that trust administration reflects the grantor’s stated intentions over time. Assistance is available for preparing any required tax filings or responding to beneficiary inquiries about trust terms and distributions.
Regular reviews of the trust and related estate planning documents are important to adapt to life events such as births, deaths, marriages, or changes in financial circumstances. While ILITs are irrevocable, some administrative adjustments and related document updates can be made to preserve the grantor’s goals. We recommend periodic check-ins to confirm policy status, beneficiary needs, and trustee capacity, ensuring the trust remains effective and aligned with the broader estate plan and evolving legal or tax environments.
An Irrevocable Life Insurance Trust is a trust created to hold life insurance policies or to receive life insurance proceeds, with terms that control how benefits are managed and distributed after the insured’s death. Once a policy is owned by the trust or proceeds are payable to it, the trust document governs payout timing and conditions, and the trustee administers the funds according to those instructions. The ILIT structure can offer benefits such as controlled distributions, protection from certain claims, and potential removal of proceeds from the grantor’s estate when established and funded correctly. Setting up an ILIT involves drafting a trust agreement, naming trustees and beneficiaries, coordinating policy assignment or issuance in the trust’s name, and documenting funding steps. Trustees must handle administrative duties like premium payments if applicable, recordkeeping, and sending required notices to beneficiaries when needed. Careful timing and compliance with applicable tax rules are essential to achieve the intended estate planning outcomes and to avoid unintended estate inclusion.
Transferring a policy to an ILIT can remove the proceeds from the grantor’s taxable estate, but timing and specific circumstances matter. Transfers made within certain lookback periods before death, such as the three-year rule that can apply to some life insurance transfers, may still result in estate inclusion. Proper planning, including funding the trust well in advance and coordinating new policy purchases made directly in the trust, can reduce the risk of estate inclusion. It is important to document transfers and obtain written confirmation from the insurance carrier that ownership has changed to the trust. Working with legal counsel helps ensure transfers are completed correctly and that any necessary gift documentation or notices, such as Crummey notices, are prepared and maintained to support the intended tax treatment.
When a trust owns a policy, premiums are typically paid from funds contributed to the trust by the grantor or from trust assets if available. One common approach involves the grantor gifting funds to the trust for the express purpose of paying premiums. To preserve favorable gift tax treatment, these contributions are often structured with withdrawal notice periods that allow beneficiaries limited access for a short window, known as Crummey notices. Trustees must maintain accurate records of premium contributions, beneficiary notices, and any withdrawals to document compliance with notice requirements. Proper documentation is essential to support the intended gift tax treatment and to ensure the trust remains funded so the policy remains in force until the insured’s death or until other planned changes are made.
Choosing a trustee involves balancing administrative capability, trustworthiness, and willingness to serve. Individuals often select a trusted family member, close friend, or a professional trustee to manage duties such as recordkeeping, premium payments, and distributions. The trustee should understand the responsibilities of managing the trust and be prepared to communicate transparently with beneficiaries about administration and distributions. When selecting a trustee, consider whether the person is likely to be available and impartial over the long term, and whether a corporate trustee or co-trustee arrangement might provide continuity and administrative experience. Clear trust provisions outlining trustee powers and compensation, if any, help ensure effective management and reduce the likelihood of conflicts or administrative difficulties.
Crummey powers give beneficiaries a temporary right to withdraw contributions to a trust, creating a present interest that can qualify the transfers for the annual gift tax exclusion. In ILITs, Crummey notices are commonly used when the grantor makes gifts to the trust to cover premiums so that each gift can be excluded from gift tax under the annual exclusion rules, provided notice and withdrawal rights are properly documented. Implementing Crummey provisions requires clear written notices to beneficiaries and consistent administration so that the IRS recognizes the transfers as present interest gifts. Trustees should retain copies of notices and any beneficiary responses, and follow a routine that demonstrates the availability of withdrawal rights for the specified period each time a qualifying contribution is made.
An ILIT can be drafted to provide for minor children or family members with special needs by specifying distribution terms, age-based release schedules, or conditions tied to education or support. Trust provisions can create safeguards that ensure funds are used for designated purposes rather than disbursed directly to beneficiaries who may not be ready to manage significant sums or who may have needs that require ongoing oversight. For beneficiaries with disabilities, careful drafting is needed to avoid jeopardizing government benefits. Specialized trust provisions or linked planning tools can be used to supplement public benefits without causing disqualification. Working through these details during drafting helps ensure the trust supports beneficiaries’ needs while maintaining access to necessary public programs.
After funding an ILIT, retain documentation confirming the transfer of policy ownership, such as signed assignment forms and written confirmation from the insurance carrier that ownership and beneficiary designations reflect the trust. Keep copies of the trust agreement, notices sent to beneficiaries, records of gifts and premium payments, and any communications with carriers or financial institutions to demonstrate the trust was funded and administered according to plan. Organized records help trustees, beneficiaries, and advisors demonstrate compliance with notice requirements, support gift tax treatment, and provide clarity during trust administration. Maintaining these documents in a secure, accessible location and reviewing them periodically ensures continuity and reduces potential disputes or uncertainty for successors.
An ILIT typically complements a will and revocable trust by providing a dedicated vehicle for life insurance proceeds that is administered under trust terms rather than passing directly through probate. A pour-over will can ensure residual assets flow into a revocable trust at death, while the ILIT separately holds life insurance proceeds according to its own provisions. Coordination between documents prevents conflicting beneficiary designations and clarifies which assets are governed by each instrument. Reviewing all estate documents together is important to avoid unintended overlaps or gaps. Updating beneficiary designations on retirement accounts and insurance policies to reflect trust ownership where intended helps ensure the estate plan functions as a cohesive whole and reduces the risk of assets bypassing the trust at the time of death.
Trustees may have reporting obligations depending on the trust’s activities and applicable tax rules. While life insurance benefits paid to an ILIT are generally received by the trust income-tax-free, trustees are responsible for maintaining records of premium payments, gifts to the trust, and distributions. If the trust receives other income or engages in transactions that create taxable events, the trustee may need to file federal and state trust tax returns or informational filings as required by law. Documenting gifts, notices, and trustee actions is essential for tax compliance and for responding to inquiries from beneficiaries or tax authorities. Seeking guidance on reporting requirements helps trustees meet obligations and ensures the ILIT’s administration remains in good order.
Periodic review of your ILIT and related estate documents is recommended whenever there are major life events such as births, deaths, marriages, divorces, changes in financial circumstances, or changes in tax law. Reviews help confirm that policy ownership, beneficiary designations, and trust provisions still reflect your intentions and that trustees and beneficiary arrangements remain appropriate. Regular check-ins can catch issues like lapsed policies or outdated beneficiary forms before they cause problems. Even absent major life changes, a periodic review every few years is prudent to verify that insurance carriers have accurate records, that the trust remains adequately funded for premium obligations, and that any necessary administrative practices, such as sending Crummey notices, continue to be followed. These reviews support the long-term effectiveness of the plan.
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