An irrevocable life insurance trust, frequently called an ILIT, can be an effective planning tool for Monterey families who want clear direction for life insurance proceeds and reduced estate inclusion risk. This page explains how an ILIT operates under California law, what steps are involved in creating and funding one, and how the Law Offices of Robert P. Bergman can assist with practical document preparation and funding strategies. Whether you are coordinating insurance with a revocable living trust, planning for liquidity to settle estate obligations, or seeking structured distributions for beneficiaries, an ILIT can be tailored to the circumstances of coastal Central California households.
Creating an ILIT involves drafting trust terms, choosing a trustee, transferring ownership of a life insurance policy into the trust, and establishing a plan for premium payments and notices to beneficiaries. Our firm serves Monterey and surrounding communities and can help you evaluate whether an ILIT is appropriate given your insurance holdings, estate size, and family goals. We discuss potential tax impacts and administrative duties so you can make informed choices. To discuss how an ILIT might fit into your plan, contact Law Offices of Robert P. Bergman at 408-528-2827 for a consultation tailored to your situation.
An ILIT can provide several benefits when properly established and funded. It is commonly used to remove life insurance proceeds from an estate for tax calculation purposes, provide immediate liquidity to pay estate-related expenses, and create a controlled mechanism for distributing policy proceeds to intended beneficiaries. For families with business interests, rental properties, or complex asset mixes, proceeds placed in a trust can be managed according to specified instructions instead of passing directly to heirs. The trust format also supports privacy by keeping settlement details out of probate files and can limit direct access to funds when that aligns with the grantor’s wishes and family needs.
Law Offices of Robert P. Bergman provides estate planning services to Monterey and the greater San Jose region with a focus on practical solutions and clear communication. Our approach centers on understanding each client’s family dynamics, financial profile, and long-term intentions for asset distribution. We prepare trust documents, coordinate transfers of life insurance policies, and advise on related instruments such as revocable living trusts, powers of attorney, and healthcare directives. Clients receive guidance on funding the trust and managing trustee responsibilities so the plan functions as intended when it is needed most.
An ILIT is a trust that becomes the owner and beneficiary of a life insurance policy. Once the policy is transferred to the trust, the originating owner no longer has direct ownership, and the trustee controls the policy and proceeds in accordance with the trust terms. Funding the trust and making premium payments typically requires annual gifts from the grantor to the trust, often structured to qualify for the federal annual gift tax exclusion through beneficiary withdrawal rights. The trust document specifies distribution rules for proceeds and may include instructions for income or principal distributions, protecting funds for intended recipients and aligning with the grantor’s planning objectives.
Key legal considerations for ILITs include the timing of transfers, gift tax reporting, and complying with insurer requirements to change ownership. A common planning hurdle is the federal three-year inclusion rule, which can bring policy proceeds back into the grantor’s estate if the grantor retains incidents of ownership or transfers occur close to the date of death. Properly structured trust language, clear transfers of ownership, and adherence to premium funding strategies help reduce the risk of estate inclusion. Working through these details during the planning process reduces surprises and supports the trust’s intended tax and distribution outcomes.
An ILIT is an irreversible arrangement in which a trust holds a life insurance policy outside of the grantor’s taxable estate. The trust agreement names a trustee who administers the policy and manages proceeds for beneficiaries according to instructions in the trust. Once the grantor transfers ownership to the ILIT, the grantor generally cannot reclaim the policy or unilaterally revise the trust terms. The trust can dictate whether proceeds are distributed outright to beneficiaries, held for future distributions, or used to pay estate debts. The design permits tailored control of how proceeds are used while aiming to meet tax planning and family objectives.
Establishing an ILIT involves drafting the trust instrument, naming a trustee and successor trustees, transferring policy ownership to the trust, and creating a plan for premium payments and beneficiary notices. Gift funding is often accomplished through annual contributions to the trust that allow beneficiaries limited withdrawal rights for gift tax exclusion purposes. Trustees then use those funds to pay policy premiums and manage the policy. Proper coordination with the life insurer is necessary to change ownership and beneficiary designations, and thorough recordkeeping helps demonstrate compliance with tax rules and the grantor’s intent over time.
Several technical terms recur when discussing ILITs, and becoming familiar with them helps clarify the planning process. Important items include the grantor who funds the trust, the trustee who manages the trust and policy, beneficiary withdrawal rights designed to preserve annual gift exclusions, and the three-year inclusion rule that can affect estate treatment. Understanding these terms and their practical impact on funding and administration reduces uncertainty and supports informed decisions. The definitions below are intended to provide helpful context for Monterey residents evaluating an ILIT.
An Irrevocable Life Insurance Trust is a trust instrument that owns and controls a life insurance policy after a transfer by the grantor. The trust holds legal title to the policy and is named as beneficiary, and trust terms govern how proceeds are handled. The grantor provides funds for premium payments, often through annual contributions intended to qualify for the federal annual gift tax exclusion. Because the trust is irrevocable, changes to ownership and beneficiary rights are constrained once the transfer is complete. ILITs are commonly used to reduce estate inclusion of life insurance proceeds and to provide managed distributions to heirs.
A trustee administers the ILIT, manages the insurance policy, handles premium payments, and follows distribution instructions specified in the trust. Trustees have fiduciary duties to act in the interests of beneficiaries, maintain accurate records, and provide any required notices related to gifts and withdrawals. Selecting a trustee involves weighing reliability, financial acumen, and willingness to serve. The trustee also coordinates with insurance companies to ensure proper ownership and beneficiary forms are on file, and carries out post-death administration according to the trust’s distribution schedule and any applicable tax reporting obligations.
The grantor, also called the settlor, is the person who creates the ILIT and funds it through transfers or gifts to pay premiums. Once the grantor transfers a policy into the trust, control over the policy shifts to the trustee, and the grantor’s rights are limited in order to achieve the trust’s intended tax treatment. The grantor’s actions in funding the trust should align with the trust document and the desired exclusion strategies to avoid unintended estate inclusion. Clear documentation of transfers and gift tax filings is part of the process when the grantor establishes the trust.
A Crummey notice is a written communication to beneficiaries that informs them of their temporary withdrawal rights over contributions to the trust, a technique frequently used to preserve the annual gift tax exclusion. The notice must be timely and must actually provide a meaningful opportunity to withdraw to be effective for tax purposes. Properly documenting the notice and any beneficiary response helps support the tax treatment of contributions. Gift tax reporting and understanding the interplay with lifetime exclusion amounts are important when planning premium funding and long-term trust administration.
An ILIT differs from a revocable living trust or a simple beneficiary designation because it transfers ownership of the policy out of the grantor’s estate and imposes binding distribution rules. A revocable trust provides flexibility and control during life but does not remove assets from estate inclusion while the grantor retains powers. Beneficiary designations are simple but may not provide the same distribution controls or protection from creditors and family disputes. For some families a combination of documents — wills, living trusts, beneficiary designations, and an ILIT — provides a comprehensive plan that balances control, tax considerations, and administrative ease.
A limited approach relying on direct beneficiary designations may suit individuals with straightforward family situations, modest insurance proceeds, and minimal estate tax exposure. Where the priority is quick payment to a surviving spouse or dependent without additional distribution controls, designating beneficiaries on the policy itself can be efficient and avoid trust administration. This approach reduces administrative complexity and may be preferable when there are no concerns about estate taxes, creditor claims, or the need to manage distributions over time. Evaluating the family structure and financial profile helps determine whether a simple solution is adequate.
For households with relatively small estates or low-value life insurance policies, the administrative costs and constraints of an ILIT may outweigh the potential benefits. If the policy proceeds are unlikely to affect estate tax exposure and beneficiaries do not need structured distributions or creditor protection, maintaining simplicity can be an appropriate planning choice. In such circumstances, maintaining clear beneficiary designations, a pour-over will, and basic trust arrangements may provide sufficient protection and transfer clarity without adding trust administration duties.
A comprehensive arrangement is often beneficial when life insurance proceeds are substantial enough to impact estate tax calculations or when families need liquidity to settle debts, taxes, or business continuation expenses at death. Structuring policy ownership through an ILIT removes proceeds from the grantor’s taxable estate if properly executed well before death, and allows those funds to be managed by a trustee to meet estate obligations promptly. The combination of legal drafting, funding strategy, and trustee selection helps ensure the trust performs as intended for beneficiaries and estate administration.
When families have blended relationships, business partners, minor beneficiaries, or concerns about creditor claims, a comprehensive ILIT plan offers control and structure beyond a simple beneficiary designation. Trust provisions can stagger distributions, set conditions for payments, establish spendthrift protections where allowed, and coordinate with other estate instruments to reduce conflict. The comprehensive process also addresses administrative mechanics like premium funding, notice procedures, and coordination with insurance carriers, resulting in a plan that supports long-term family goals and mitigation of foreseeable disputes or financial risks.
A comprehensive approach to ILIT planning provides multiple benefits, including potential removal of insurance proceeds from estate calculations, predetermined control over distributions to beneficiaries, and coordinated funding strategies to maintain coverage without unintended tax consequences. It also promotes administrative readiness by identifying trustees, successor trustees, and recordkeeping practices that support ongoing management. A well-structured trust can reduce the likelihood of family disputes over proceeds and ensure funds are used in alignment with the grantor’s intentions for liquidity, education, care, or other designated purposes.
Beyond tax considerations, a comprehensive plan improves predictability and privacy at the time of settlement. Trust administration can be designed to deliver benefits gradually, protect funds from direct access where appropriate, and preserve assets for long-term needs. Additionally, integrating ILIT planning with broader estate documents such as pour-over wills, living trusts, and healthcare directives provides consistency across the estate plan and reduces the chance of conflicting instructions during an already sensitive period for family members.
One of the primary benefits of a comprehensive ILIT strategy is the ability to limit potential estate inclusion of large life insurance proceeds and to control how those proceeds are distributed to beneficiaries. By placing the policy in a trust and following proper funding practices, proceeds can be managed by a trustee in accordance with clear instructions rather than passing outright through the estate. This arrangement can protect beneficiaries from sudden windfalls without direction and allow the trustee to coordinate distributions for needs such as education costs, housing, or ongoing living support.
An ILIT can help preserve family privacy by keeping the handling of life insurance proceeds out of probate records and limiting court involvement. Trust administration typically follows the terms of the trust instrument, enabling smoother distribution and clearer instructions for trustees and beneficiaries. Properly documented funding and communication help the trustee carry out those duties efficiently, which can reduce delays and disputes. For families concerned about confidentiality and orderly transitions, a comprehensive approach offers an organized framework to carry out the grantor’s wishes discreetly and reliably.
Before transferring a policy to an ILIT, confirm the insurer’s procedures for changing ownership and beneficiary designations and ensure the trust document matches the insurer’s forms. Confirming ownership prevents unintended retention of incidents of ownership that could bring proceeds back into the estate. Maintain clear records of transfer documentation and communications with the carrier. Coordinate the timing of ownership changes with premium payment plans so coverage is uninterrupted. Taking these steps in advance reduces administrative hurdles and helps the trustee implement the grantor’s funding plan without delays that could compromise the trust’s objectives.
Ensure that the ILIT’s terms align with other estate planning documents such as revocable living trusts, wills, powers of attorney, and healthcare directives. Coordination avoids conflicting instructions and helps beneficiaries and fiduciaries understand their roles. For individuals with business interests or retirement accounts, consider how the ILIT interacts with successor ownership plans or beneficiary designations on retirement assets. Regularly review documents after major life events like marriage, divorce, births, or property acquisitions to confirm the ILIT remains consistent with your overall plan and family circumstances.
Residents often consider an ILIT when they want to remove life insurance proceeds from their taxable estate, provide immediate liquidity to beneficiaries, or structure distributions over time. People who hold significant life insurance for business continuation, estate tax planning, or providing for minor children may prefer the control and distribution rules that a trust provides. The ILIT also supports planning for unique family situations, such as blended families or beneficiaries with special financial needs, by allowing the grantor to specify how proceeds should be used and who manages them after the grantor’s death.
Other reasons to consider an ILIT include preserving privacy by avoiding probate, reducing the potential for family disputes over large insurance payouts, and coordinating life insurance with other estate planning components. The trust structure enables the grantor to set aside funds for specific purposes, such as college expenses or long-term care, while entrusting administration to a designated trustee. For those with concerns about creditor claims or preserving assets for future generations, an ILIT can be part of a broader planning approach that provides safeguards and a clear mechanism for distribution.
Common circumstances that lead people to set up an ILIT include large life insurance policies that could increase estate tax liability, a desire to provide managed distributions to heirs, or the need to provide liquidity for business succession or estate settlement. Individuals with estate planning goals involving privacy, creditor protection, or instruction-based distributions for minors or beneficiaries with special financial needs also find ILITs useful. The decision to use an ILIT depends on the total estate plan and the timing of transfers, so careful analysis ensures the arrangement meets the intended objectives without unintended tax or administrative consequences.
When life insurance proceeds are large relative to the estate, transferring the policy into an ILIT can help reduce estate inclusion and associated tax exposure if structured and funded correctly. The trust removes ownership from the grantor’s estate and places proceeds under trust control, which can preserve wealth for heirs and help meet obligations without forcing asset sales. Considering the timing of transfers, premium funding strategy, and coordination with other estate instruments is important to achieve the intended tax and liquidity benefits while observing applicable federal and state rules.
An ILIT can provide a reliable source of liquidity at the time of death, allowing trustees to pay debts, taxes, and administrative expenses without delay. This is particularly valuable for families with illiquid assets such as real estate or closely held businesses that should not be quickly sold to cover obligations. Having a trust-owned life insurance policy ensures funds are available promptly, which can facilitate orderly estate settlement, preserve ongoing business operations, and reduce pressure on heirs who might otherwise face difficult financial decisions during a period of grief.
An ILIT can help structure distributions to beneficiaries in a way that may reduce direct exposure to creditor claims and unplanned access. By vesting proceeds in the trust and directing the trustee to manage distributions, grantors can create layers of protection compared to outright payments. While the degree of protection depends on applicable state law and the timing of transfers, the trust format supports orderly handling of funds and can be combined with other planning tools to strengthen asset protection. Clear drafting and administration are important to maximize the intended protective effects.
If you live in Monterey or nearby communities and are considering an ILIT, we are available to discuss the practical steps and implications. The Law Offices of Robert P. Bergman assists clients with document drafting, policy transfers, trustee guidance, and coordination with insurers. We focus on clear communication and actionable steps so clients understand timing, funding options, and any tax reporting responsibilities. To arrange a consultation, call 408-528-2827 or reach out through the firm’s contact page to schedule a time to review your goals and financial picture.
Clients choose our firm for practical, communicative estate planning assistance that addresses both legal mechanics and family objectives. We help clients evaluate whether an ILIT fits within a broader estate plan, prepare clear trust documents, and coordinate policy ownership transfers. Our approach emphasizes transparency about timing, funding, and administrative responsibilities, so clients know what to expect during the trust’s creation and ongoing management. We advise on integration with wills, living trusts, and powers of attorney to create a cohesive plan tailored to each household’s circumstances.
The firm assists with the technical and logistical tasks such as drafting trust provisions, communicating with insurance carriers to change ownership, and preparing documentation that supports the intended tax treatment of contributions. We also advise trustees on their duties, recordkeeping practices, and distribution procedures. Our goal is to provide clients with practical, well-documented solutions that are straightforward to implement and easy for trustees to administer when the time comes.
Beyond initial drafting and funding, we support clients with periodic reviews and amendments to related estate planning documents as family situations and laws change. That ongoing perspective helps ensure the ILIT and ancillary documents remain aligned with the client’s wishes and current rules. Clients appreciate the consistent communication and clarity about next steps, whether establishing the trust, transferring an existing policy, or addressing beneficiary and trustee transitions over time.
Our ILIT process starts with an initial review of your financial situation, insurance policies, and estate planning goals. We gather documents, discuss funding strategies and timing, and recommend trust terms that align with your intentions. After drafting the trust instrument, we assist with transferring policy ownership and preparing gift documentation if required. We also prepare trustees to manage premiums and notices. The process emphasizes clarity and documentation to support desired tax and distribution outcomes, and we remain available to answer questions and assist with administration after the trust is funded.
The first step focuses on understanding your objectives, current insurance holdings, and family circumstances. We review existing estate documents, identify relevant insurance policies, and evaluate whether transferring ownership to a trust will achieve the intended goals. Discussions address timing, potential tax implications, and whether alternative structures may better meet your needs. This assessment helps determine whether an ILIT or another planning tool is appropriate, and provides the foundation for drafting documents that reflect your intentions while addressing administration and funding mechanics.
We request copies of life insurance policies, beneficiary designations, current estate planning documents, and relevant financial statements. Reviewing these materials reveals ownership details, premium schedules, and any contractual constraints on transferring the policy. Clear documentation helps identify whether the insurer permits transfers without penalties and whether medical or policy underwriting issues could arise. Gathering this information early streamlines the trust drafting and transfer process and enables us to advise on practical steps to fund premiums and effect ownership changes without unintentionally impacting coverage.
Early in the process we help clients identify primary and contingent beneficiaries, determine distribution preferences, and discuss trustee selection criteria. Trustee choice should reflect the capacity to manage financial responsibilities, maintain records, and follow trust terms. We discuss successor trustees and potential corporate trustee options if independent administration is preferred. Clarifying preferences and trustee responsibilities up front ensures the trust instrument accurately reflects the grantor’s intentions and that the trustee understands the administrative role before funding and transfers occur.
Drafting the ILIT involves creating clear trust provisions addressing ownership, distribution instructions, trustee powers, withdrawal notice procedures, and succession planning. We prepare language tailored to your goals while ensuring compatibility with federal gift and estate tax rules. The funding plan outlines how premium payments will be made, whether through annual gift contributions, loans, or other arrangements that comply with tax and insurance requirements. This coordinated approach reduces the risk of technical errors that could undermine the trust’s intended outcomes.
Trust provisions address the trustee’s authority to pay premiums, manage the policy, provide notices to beneficiaries, and distribute proceeds at death. Funding provisions commonly describe annual gift procedures and withdrawal notice mechanics intended to preserve annual exclusion treatment. The document will also specify successor trustees and compensation guidelines. Careful drafting anticipates future events and provides flexibility for administration while preserving the legal characteristics needed to achieve the trust’s planning goals, such as estate tax exclusion of policy proceeds.
We contact insurers to determine required forms and any insurer-specific conditions for transfer of ownership. The trustee must be named as policyowner or the trust must be listed as owner and beneficiary per the insurer’s procedures. Timely coordination avoids lapses in coverage and ensures premium payment methods are in place after the transfer. We document the transfer and keep copies of insurer confirmations so the ownership change is clear and verifiable for both administrative and tax-related purposes.
After the trust is signed and ownership changes are completed, the trustee proceeds with funding and premium payments while maintaining records of contributions, notices, and insurer communications. The trustee also prepares for long-term administration by tracking premium schedules, beneficiary information, and documentation required for tax reporting. Periodic reviews help confirm that funding remains adequate and that the trust and related estate planning documents continue to reflect current intentions and legal requirements in California.
Transferring ownership requires insurer confirmation and coordination of premium payment methods so coverage remains in force. Trustees use contributed funds to pay premiums according to the schedule. If annual gifts are the funding vehicle, timely notices to beneficiaries help preserve gift tax treatment. Trustees should maintain bank records, copies of transfer confirmations, and documentation of premium payments. This administrative diligence supports the trust’s legal and tax position and reduces the likelihood of disputes or coverage interruptions that could undermine the plan’s goals.
Trustees are responsible for administering the ILIT in line with trust terms, including providing required notices, maintaining records, and handling distributions when the insured dies. Trustees must file any necessary tax forms, communicate with beneficiaries, and follow distribution instructions for policy proceeds. Clear records of all actions, notices, and payments are essential for transparency and compliance. Trustees should also be prepared to coordinate with estate representatives and financial professionals to ensure proceeds are applied according to the trust and the overall estate plan.
An ILIT is a trust that owns a life insurance policy and controls how proceeds are used for beneficiaries. Once the grantor transfers ownership into the trust and the trustee becomes the policyowner, the trust holds legal title and the trustee manages the policy according to the trust’s provisions. The trust instrument specifies distribution rules, trustee powers, and procedures for funding premium payments, providing a structured mechanism to ensure the grantor’s intentions are followed after death. Creating an ILIT involves drafting the trust, transferring ownership with the insurer, and establishing a funding plan for premiums. Because the trust is irrevocable, it is intended to remove policy proceeds from the grantor’s estate if done properly and with appropriate timing. Careful coordination with the insurer and accurate recordkeeping support the trust’s intended tax and administrative outcomes.
Transferring an existing policy to an ILIT is generally treated as a gift for federal tax purposes and may require gift tax reporting. Many grantors use the annual federal gift tax exclusion by giving annual amounts to the trust, often supported by temporary beneficiary withdrawal rights to preserve exclusion treatment for those gifts. The practical effect is that the grantor funds the trust, and the trustee uses those funds to pay premiums. Gift tax consequences depend on the size of the gifts and the total use of lifetime exclusions. Proper documentation, timely notices, and accurate gift tax filings when required help maintain the intended tax positions. Discussing these steps during planning helps avoid surprises and ensures compliance with reporting obligations.
Federal rules include a three-year lookback that can bring policy proceeds back into the grantor’s estate if the grantor retains incidents of ownership or if certain transfers occur within three years of death. To minimize this risk, transfers of existing policies are commonly done well before the three-year period, or new policies are purchased directly by the ILIT. Ensuring the grantor relinquishes ownership rights is essential to achieving the trust’s intended estate treatment. Timing is only one consideration; the manner of the transfer and any retained powers or benefits can affect estate inclusion. A careful review of ownership, beneficiary designations, and retained powers helps determine the appropriate timing and method of funding an ILIT to meet estate planning objectives.
Because an ILIT is generally irrevocable, the grantor cannot unilaterally change trust terms or beneficiaries after the trust is funded, except in limited circumstances specified by the trust instrument or through court action. If flexibility is important, the plan should address potential future changes at the time the trust is drafted, for example by naming successor trustees or providing mechanisms that the grantor and trustee can use within permissible bounds. If changes become necessary, options may include negotiating with beneficiaries, using trustee powers set out in the trust, or pursuing modification through legal processes where permitted. Anticipating likely changes at the drafting stage reduces the need for later court involvement or complex workarounds.
A trustee should be someone or an entity capable of managing financial responsibilities, maintaining accurate records, and following the trust’s terms impartially. Family members, trusted friends, professional fiduciaries, or corporate trustees each have advantages and trade-offs. Individual trustees may offer familiarity with family circumstances, while institutional trustees can provide continuity and administrative resources. The choice depends on the complexity of the trust, the anticipated duties, and the preferences of the grantor and beneficiaries. It is also prudent to name successor trustees to ensure continuity if the initial trustee cannot serve. Discussing trustee duties openly with potential candidates before naming them avoids misunderstandings and prepares trustees for the responsibilities involved in administering the policy and trust.
Once the policy is owned by the trust, premiums are typically paid by the trustee using funds contributed to the trust. Grantors often make annual gifts to the trust timed to cover premium payments, and trustees then apply those contributions to keep coverage in force. In many plans, beneficiaries receive temporary withdrawal rights to preserve the annual gift tax exclusion for those contributions, and trustees document any notices and responses to maintain compliance. Alternative funding arrangements can include loans, transfers of other assets, or alternative premium finance structures, but each method has legal and tax implications that must be carefully reviewed. Clear recordkeeping of contributions and premium payments is essential for administration and tax reporting.
When the insured dies, the insurance company pays the death benefit to the trust owner of the policy. The trustee then administers the proceeds according to the trust instructions, which may provide for immediate distributions, staged payments, income for a surviving spouse, or other tailored uses. Trustees also handle payment of estate-related expenses if the trust terms permit, helping to provide liquidity without forcing asset liquidation. Trustees must follow the trust’s distribution rules and maintain records of how proceeds are used. Proper drafting of distribution provisions and clear trustee guidance reduces the potential for disputes and ensures proceeds support the grantor’s intended purposes for beneficiaries.
An ILIT can provide a level of protection by placing proceeds under trust control rather than releasing funds directly to beneficiaries, which may reduce direct exposure to certain creditor claims depending on applicable law. The trust’s spendthrift provisions, if valid under state law, can further limit beneficiary access to principal and may prevent immediate creditor attachment in some circumstances. However, protections depend on timing, local law, and the nature of the creditor claims. Because laws vary and exceptions exist, an ILIT should be designed with realistic expectations about protection and coordinated with other planning tools when asset protection is a concern. Detailed legal advice ensures the trust’s terms align with the desired protective effects under California law.
An ILIT generally does not help with Medicaid or Medi-Cal eligibility if transfers are made within the program’s lookback period, and benefits may be affected if assets are transferred without proper planning. However, when established well in advance and coordinated with a broader Medicaid planning strategy, an ILIT can play a role in preserving insurance proceeds for beneficiaries while other measures address eligibility timing and asset protection. Timing and documentation are critical to avoid unintended eligibility consequences. Because Medi-Cal rules are complex and can change, coordinating ILIT planning with long-term care planning and asset protection strategies is essential. Consulting about the interaction between an ILIT and public benefits planning helps create a plan that considers both liquidity needs and program eligibility rules.
To get started, gather current life insurance policies, beneficiary forms, and existing estate planning documents such as wills and revocable trusts. Schedule an initial consultation to review policy ownership, discuss funding options for premiums, and identify beneficiaries and trustee preferences. Preparing financial statements and a summary of assets helps create a plan that is tailored to your circumstances and goals. During the first meeting we will outline the necessary steps, including drafting the trust, coordinating ownership changes with the insurer, and preparing any required gift documentation. Contact Law Offices of Robert P. Bergman at 408-528-2827 to arrange a consultation and begin the planning process for an ILIT that meets your needs in Monterey.
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