An Irrevocable Life Insurance Trust (ILIT) can help California families manage life insurance proceeds outside of a taxable estate and provide liquidity to cover estate-related obligations. For residents of La Palma and surrounding Orange County communities, the ILIT is a planning tool that transfers ownership of a life insurance policy to a trust that cannot be changed by the policyholder once properly funded. This arrangement can preserve more of an estate for heirs, support ongoing expenses for a surviving spouse or dependents, and coordinate with wills, revocable trusts, and powers of attorney to form a comprehensive estate plan tailored to your family’s needs.
Creating an Irrevocable Life Insurance Trust requires careful drafting and timely funding to achieve the intended tax and asset protection outcomes. The trust language, selection of trustee, and the assignment of the policy must align with federal tax rules and California law. Planning choices such as naming beneficiaries, structuring distributions, and coordinating with retirement assets and medical directives will affect how proceeds are used after a death. Working with a law office familiar with estate planning options can help clarify how an ILIT interacts with other estate planning documents like pour-over wills, revocable living trusts, and powers of attorney.
An Irrevocable Life Insurance Trust offers several benefits that matter to families who want to protect insurance proceeds from estate taxes and ensure orderly distribution to beneficiaries. By removing the policy ownership from your name, proceeds generally are not included in your taxable estate, which can preserve more value for heirs. An ILIT can provide immediate liquidity to pay estate administration expenses, taxes, and debts without forcing a sale of other assets. It can also impose distribution rules, provide for minor children or a beneficiary with special needs, and reduce family conflicts by establishing clear instructions for the use of insurance proceeds after a family member dies.
The Law Offices of Robert P. Bergman serves individuals and families throughout California, assisting with estate planning documents such as revocable living trusts, pour-over wills, and Irrevocable Life Insurance Trusts. Our office offers focused attention to each client, helping to tailor trusts and related instruments to meet family goals while complying with tax and probate law. We handle trust funding, beneficiary coordination, trust certifications, and related petitions when plans change. Clients benefit from clear communication, practical guidance, and careful drafting to reduce the risk of unintended tax consequences and to ensure that insurance proceeds serve the family as intended.
An Irrevocable Life Insurance Trust is a legal vehicle created to own and control life insurance policies. Once a policy is transferred into the trust or the trust is named owner and beneficiary, the policy proceeds are governed by the trust terms rather than passing through the probate estate. This distinction can reduce federal estate tax exposure and provide protection from creditor claims in certain circumstances. Key decisions include choosing who serves as trustee, how distributions will be made, and whether the trust will accept gifts to pay insurance premiums. Proper timing and documentation are important to prevent unintended inclusion of the policy proceeds in your estate.
An ILIT must be drafted and funded carefully to accomplish its objectives. Funding can involve assigning an existing policy to the trust or having the trust purchase a new policy. When an assignment occurs within three years of death, federal tax rules may still treat proceeds as part of the deceased’s estate, so early planning is beneficial. The trust also needs provisions for premium payments and for stability if the trustee changes or a beneficiary’s circumstances evolve. Coordinating the ILIT with retirement plan trusts, pour-over wills, and advance health care directives ensures the plan functions smoothly under real-world conditions.
An Irrevocable Life Insurance Trust is a trust that cannot be easily revoked and that holds a life insurance policy on the grantor’s life. The trust becomes the legal owner of the policy, and the trustee controls the policy and its proceeds according to the trust terms. This separation of ownership from the insured person can prevent the insurance proceeds from being counted as part of the insured’s estate for federal estate tax purposes. Trust provisions address who receives proceeds, under what conditions, and how funds should be used for expenses, education, or long-term care. Proper drafting addresses tax rules and ensures the trust accomplishes your family’s goals.
Creating an ILIT requires attention to several components: clear trust language, selection of a reliable trustee, drafting premium payment mechanisms, and properly assigning or transferring the insurance policy into the trust. Documentation must confirm the trust’s ownership and beneficiary status with the insurance company. The process also includes coordinating beneficiaries, setting distribution standards, and planning for possible trustee replacements or successor trustees. Additionally, the trust should integrate with the rest of your estate plan so that assets, wills, powers of attorney, and health directives work together and reflect your wishes in a consistent, enforceable form.
This glossary provides brief definitions of terms frequently used when discussing Irrevocable Life Insurance Trusts. Understanding these terms helps when making decisions about trust language, trustee responsibilities, policy assignments, and the tax effects of various funding strategies. Knowing the difference between ownership and beneficiary designation, the roles of trustees and beneficiaries, and tax-related deadlines will improve communication with your attorney and financial advisors and help ensure that your ILIT is structured to meet both legal requirements and family objectives.
A trustee is the person or entity responsible for managing the trust, holding title to the life insurance policy, making payments, and distributing proceeds according to trust terms. The trustee has a duty to follow the trust document and act in the best interests of the beneficiaries. Trustee responsibilities can include paying insurance premiums, filing any required tax returns, communicating with beneficiaries, and making investment or distribution decisions when the trust receives proceeds. Selecting a trustee involves balancing trustworthiness, availability, administrative skill, and knowledge of the family’s needs.
A policy assignment transfers ownership of an existing life insurance policy from the insured to the ILIT. The assignment must be documented and accepted by the insurance company to change the owner and beneficiary to the trust. Timing is important because an assignment made within three years of the insured’s death may cause the policy proceeds to be included in the insured’s taxable estate. Properly executed assignments also clarify premium payment responsibilities and the trustee’s authority to manage the policy, including making premium payments or changing beneficiaries as permitted by the trust terms.
Premium funding is the process by which funds are made available to the ILIT to pay life insurance premiums. Common funding methods include gifts from the grantor to the trust, a Crummey provision permitting beneficiaries a limited withdrawal right for gift-tax annual exclusion purposes, or using other trust assets to support premiums. Proper funding mechanisms help avoid gift tax complications and ensure that the trustee can maintain the policy in force. Funding provisions should be tailored to expected premium levels and to the grantor’s broader estate and income planning objectives.
Estate inclusion rules determine whether life insurance proceeds are counted as part of a deceased person’s taxable estate. Under federal rules, if the insured retains certain rights over the policy or transferred the policy within a specified lookback period, proceeds may be included in the estate. A properly structured ILIT seeks to avoid these triggers by removing ownership and certain incident-of-ownership rights from the insured. Understanding these rules and the three-year lookback period is essential to achieving the desired tax and planning results.
Comparing an ILIT to alternatives such as owning a policy outright, naming an individual as beneficiary, or relying on a revocable trust reveals important trade-offs in control, flexibility, and tax treatment. Owning a policy personally allows easy access and changes but may expose proceeds to estate inclusion. A revocable trust offers flexibility while alive but does not remove estate inclusion because the grantor may retain powers. An ILIT reduces estate inclusion risk but requires giving up certain controls and following formal funding procedures. Choosing the right option depends on family objectives, asset mix, and long-term tax considerations.
For families with modest life insurance proceeds and straightforward distribution needs, owning a policy outright or naming primary beneficiaries directly may be sufficient. If estate tax exposure is unlikely due to the overall size of assets, the added complexity of creating an ILIT may not be necessary. Simplicity can reduce administrative burdens and permit more flexible access to policy benefits. Nevertheless, even modest estates should consider coordination with wills, powers of attorney, and health care directives to ensure that beneficiary designations and policy ownership align with overall estate goals and reduce the risk of disputes after a death.
When life insurance is intended to address short-term liabilities, such as bridging a mortgage during a limited period or covering a business buyout contingency, a less formal ownership arrangement may work well. Temporary needs that do not implicate long-term estate tax concerns may be met through straightforward policy ownership and beneficiary designations. However, if the policy is intended to provide long-term liquidity or to preserve assets across generations, a more durable arrangement like an ILIT can offer better long-term protection and structure for distributions to beneficiaries with varied needs.
Complex estates with sizable assets, mixed investments, or multiple property types often require coordinated planning to minimize taxes and ensure a smooth transfer to beneficiaries. An ILIT interacts with retirement accounts, revocable trusts, and other transfer-on-death arrangements, and those interactions must be analyzed to avoid unexpected tax consequences. Comprehensive planning addresses the timing of policy transfers, funding strategies for premiums, and alignment with charitable giving or business succession plans. A coordinated approach helps ensure the insurance proceeds serve intended purposes without undermining other estate planning goals.
When beneficiaries include minors, family members with limited financial experience, or individuals with special needs, a thorough planning approach helps set appropriate distribution standards and oversight. An ILIT can direct funds for education, ongoing care, or controlled distributions over time, but the trust terms must be drafted with an eye toward beneficiaries’ circumstances. Planning also anticipates potential family disputes and creates mechanisms to resolve conflicts by setting clear trustee powers, decision-making processes, and distribution criteria to protect the long-term interests of beneficiaries.
A comprehensive planning approach aligns an ILIT with the broader estate plan, ensuring that beneficiary designations, retirement accounts, and other trusts work together. This alignment reduces the risk of unintended estate inclusion, improves liquidity for estate settlement, and clarifies how proceeds are used for debts, taxes, and family support. A holistic review can identify opportunities to reduce administrative costs and to preserve wealth for future generations. It also helps avoid gaps that could result in delays or litigation during probate or trust administration, providing greater predictability for loved ones.
Comprehensive planning also supports continuity by naming successor trustees, establishing substitute arrangements for premium payments, and addressing contingencies such as divorce, remarriage, or a beneficiary’s incapacity. By considering multiple scenarios in advance, the plan can provide consistent outcomes regardless of changes in financial or family circumstances. This proactive approach tends to reduce confusion for survivors, shorten administration time, and ensure that insurance proceeds are available when needed to pay taxes, debts, and ongoing household expenses without forcing the sale of other valuable property.
One primary benefit of a comprehensive ILIT arrangement is reducing the likelihood that life insurance proceeds will be included in a taxable estate. By removing ownership and incident-of-ownership rights from the insured, an ILIT helps ensure that proceeds pass under the trust terms rather than through the estate. This structure can preserve a larger portion of the death benefit for heirs after taxes and administration costs are addressed. Careful planning addresses timing, assignment language, and funding to comply with tax rules and achieve the intended transfer of value to beneficiaries.
An ILIT provides immediate liquidity to pay estate settlement costs, income tax obligations, and outstanding debts without forcing the sale of illiquid assets such as real estate or a family business. The trust document can specify how proceeds are used — for example, to provide a regular income to a surviving spouse, fund education for children, or create a separate trust for a beneficiary with special needs. By setting distribution rules in advance, an ILIT reduces uncertainty and helps ensure the proceeds support the family in ways that reflect the grantor’s priorities.
Begin ILIT planning well in advance of any anticipated need to ensure that transfers do not fall within the three-year lookback period that can cause estate inclusion. Early planning allows you to transfer policy ownership or have the trust purchase a policy without the risk of unintended inclusion in the estate. It also provides time to coordinate premium funding, secure a suitable trustee, and integrate the ILIT with your revocable living trust and pour-over will. Starting early reduces the pressure to make hurried decisions and allows the plan to be monitored and updated over time.
Make sure the ILIT is reviewed alongside your revocable trust, wills, powers of attorney, and health care directives so that beneficiary designations and property ownership align with your overall objectives. Inconsistent documents or overlooked beneficiary forms can undermine the ILIT’s benefits. Regular reviews after major life events such as marriage, divorce, births, or estate value changes will help maintain consistency and ensure the plan adapts to evolving family needs and tax law changes. Coordination reduces the likelihood of disputes and simplifies administration for survivors.
You might consider an ILIT if you want to preserve life insurance proceeds for heirs while minimizing potential estate tax exposure. It is often appropriate when a significant life insurance benefit could otherwise increase the taxable estate or when you want to ensure liquidity to pay estate expenses without selling other assets. An ILIT also suits those who wish to control distributions, provide for education or ongoing support, or protect proceeds from possible creditor claims. Evaluating your asset mix and long-term goals will clarify whether an ILIT fits your overall estate plan.
Consider an ILIT when beneficiaries include young adults, people with special needs, or individuals who may not be prepared to manage a large lump sum. An ILIT enables you to set distribution terms, establish subtrusts, and appoint trustees who will manage proceeds for the beneficiaries’ long-term welfare. It also suits families pursuing charitable goals or those engaged in business succession planning where insurance proceeds provide necessary liquidity. Thoughtful implementation helps align financial protection with the family’s values and future plans.
Typical circumstances that prompt families to consider an ILIT include anticipating estate tax exposure, owning illiquid assets that would be difficult to sell on short notice, and wanting to provide structured support to beneficiaries over time. Another common situation is when a family member is a beneficiary who receives public benefits or has special needs, and the ILIT can be drafted to protect eligibility while providing supplemental support. Business owners may also use ILITs to fund buy-sell agreements or to ensure a smooth transfer of ownership interests after a death.
When the combined value of assets approaches thresholds that could trigger estate taxes, placing a life insurance policy into an ILIT can be an effective strategy to reduce estate inclusion of death benefits. An ILIT can preserve liquidity for paying taxes and administration expenses, protecting real property and business interests from forced sales. Proper timing and drafting are essential to ensure the transfer achieves the intended tax treatment, so families in this circumstance should plan ahead and coordinate with other tax and estate planning measures to safeguard the estate’s value for designated beneficiaries.
Families with minor children or beneficiaries who have limited capacity often use an ILIT to direct how insurance proceeds will be used and to appoint trustees who will manage distributions responsibly. The trust can specify educational funding, health care expenses, periodic disbursements, or long-term income while protecting the assets from mismanagement. Structuring the trust with clear distribution instructions and naming successor trustees reduces uncertainty and supports ongoing financial security for those beneficiaries without disrupting public benefits when applicable.
Business owners frequently use life insurance within an ILIT to provide liquidity for buy-sell agreements, pay estate taxes, or support the transition of ownership without forcing a sale of business interests. Insurance proceeds held in a trust can ensure that family members or business partners receive fair compensation while giving the business time to continue operations. Careful planning aligns the ILIT terms with the business succession strategy and coordinates with retirement plan trusts and other documents to avoid unintended tax or ownership consequences.
The Law Offices of Robert P. Bergman provides dedicated estate planning services to residents of La Palma, Orange County, and across California. We counsel clients on creating Irrevocable Life Insurance Trusts, funding mechanisms, beneficiary design, and coordination with revocable trusts and wills. Our approach emphasizes clear communication and practical solutions tailored to local client needs. We can assist in drafting trust documents, executing policy assignments, advising on trustee selection, and preparing related documents such as health care directives and powers of attorney to form a cohesive plan that reflects your priorities.
Our office combines focused experience with personalized service to help clients design life insurance trust arrangements that meet family goals and legal requirements. We prioritize careful drafting and clear instructions to reduce ambiguity and help trustees administer trusts effectively. Clients benefit from practical guidance on funding a trust, managing premium payments, and coordinating beneficiary designations with other estate plan elements. We work to anticipate common pitfalls and to implement durable solutions that provide financial protection and peace of mind for families across Orange County and California.
We assist clients with the detailed documents that make an ILIT function smoothly, including the trust instrument, assignment agreements, certifications of trust for the insurance company, and related estate planning instruments like pour-over wills and powers of attorney. Our process includes reviewing existing policies, advising on premium funding strategies, and recommending trustee arrangements that align with clients’ administrative preferences and family circumstances. We also prepare for potential changes by including modification and successor trustee provisions to maintain continuity over time.
By coordinating the ILIT with retirement plan trusts, guardianship nominations, and other estate planning tools, we help create a cohesive and practical plan tailored to your family’s needs. We explain the timeline and tax considerations involved with assignments and policy transfers, helping you make informed decisions. Our goal is to provide clear, actionable documents that reduce stress for loved ones after a death and help ensure that insurance proceeds serve their intended purposes without unnecessary delays or disputes.
Our ILIT planning process begins with a comprehensive review of your existing estate plan, insurance policies, and family objectives. We discuss long-term goals, identify potential tax or liquidity issues, and recommend appropriate trust structures. After agreeing on a plan, we draft the trust instrument, prepare assignment or purchase documentation, and advise on funding mechanisms for premium payments. We also coordinate with insurers, trustees, and financial advisors as needed to complete the transfer and document ownership changes. Ongoing review ensures the trust remains aligned with changing circumstances and legal developments.
During the initial meeting we gather information about your family, assets, existing policies, and planning goals. We review current life insurance contracts, beneficiary designations, and related estate planning documents such as wills and revocable trusts. This stage identifies opportunities and any timing concerns, such as the three-year lookback period for assignments. We then recommend whether an ILIT suits your needs and outline potential structures, funding options, and trustee arrangements to ensure the trust will function effectively and meet your objectives.
We examine policy ownership, beneficiary designations, premium obligations, and related contractual terms to determine how a transfer or trust purchase would affect coverage and tax outcomes. Reviewing wills, revocable trusts, powers of attorney, and any prior trust instruments helps avoid conflicts and ensures cohesive planning. This review also identifies whether any policy riders or contractual restrictions could affect assignment and whether additional documentation such as a certification of trust will be required by the insurance company to recognize the trust as owner and beneficiary.
We discuss how premiums will be funded, including gifts to the trust, Crummey withdrawal notices for annual exclusion purposes, or other funding sources. We also explore trustee options, considering family members, trusted friends, or corporate trustees, and recommend backup or co-trustee arrangements if appropriate. This discussion helps shape trust provisions governing distributions, successor trustees, and administrative responsibilities. A clear plan for funding and trustee selection is essential to maintain policy continuity and to achieve the intended tax and asset protection benefits.
In this stage we prepare the trust document, assignment or purchase agreements, and any supporting certifications required by the insurer. We tailor trust language for your objectives, including distribution instructions, trustee powers, and premium payment provisions. After documents are finalized, we coordinate signing, execute assignments if transferring an existing policy, and provide guidance on how to fund the trust to meet premium obligations. We also prepare notices or procedures to document gifts used to pay premiums when necessary for tax planning.
We prepare a trust instrument that clearly names the trust, trustees, beneficiaries, and distribution terms while addressing tax considerations and administration details. If an existing policy will be transferred, we draft an assignment agreement and coordinate the necessary paperwork with the insurance company so the trust becomes the new owner and beneficiary. We ensure the trust includes provisions for premium funding and specify trustee authority to manage the policy and trust assets following the grantor’s objectives.
Once documents are agreed upon, we supervise proper execution and witness or notarization as required. We provide the trust certification or other evidence the insurance company needs to recognize the trust and assist with updating policy records. We also help implement funding strategies so the trust can pay premiums without interruption, including documenting gifts or establishing bank arrangements. Proper execution and funding are essential to ensure the policy remains in force and that the trust achieves its intended tax and distribution results.
After the ILIT is funded and the policy is held by the trust, ongoing administration is important to maintain coverage and uphold the trust’s objectives. The trustee should monitor premium payments, handle any policy loans or changes permitted by the trust, and keep beneficiaries informed as required. Periodic reviews of the trust, insurance needs, and changes in tax law ensure the plan remains aligned with family circumstances. We offer continuing support for trustee decisions, trust modifications when appropriate, and guidance for post-death administration of trust proceeds.
The trustee is responsible for maintaining the policy, making timely premium payments, and keeping accurate records of trust transactions. Depending on the trust terms, the trustee may also provide accounting to beneficiaries, make discretionary distributions, or manage investments within the trust. Clear documentation and communication reduce uncertainty and support effective administration. We assist trustees with understanding their duties, preparing required notices, and making informed decisions consistent with the trust instrument and applicable law.
Life changes and evolving tax laws may prompt updates to the ILIT or associated estate planning documents. Periodic reviews help determine whether adjustments are needed to funding arrangements, trustee appointments, or distribution provisions. If changes are required, we can advise on trust modification or decanting options that comply with applicable law and respect the grantor’s intent. Regularly scheduled reviews ensure that the ILIT continues to serve its purpose and adapts to family, financial, or legal developments over time.
An Irrevocable Life Insurance Trust is a trust that owns a life insurance policy and holds the proceeds for the benefit of named beneficiaries. Unlike a policy owned personally, ownership by the trust separates the death benefit from the insured’s estate, which can help reduce estate inclusion and provide a mechanism for structured distributions. The trustee manages the policy and administers proceeds according to the trust document, which can specify uses such as paying estate expenses, supporting a surviving spouse, or funding education for children. Owning a policy personally offers more control and flexibility for changes, but it also exposes the proceeds to estate inclusion and potential creditor claims. An ILIT requires giving up certain ownership rights but gains control through the trust instrument over how proceeds are used and distributed, which can provide lasting protection for beneficiaries and improve liquidity for the estate.
Transferring a policy into an ILIT can help exclude the death benefit from the taxable estate if the transfer is properly completed and does not fall within any inclusion rules. Federal estate tax rules focus on ownership and certain retained rights; placing the policy in an irrevocable trust removes these incident-of-ownership powers if done correctly. While California does not impose a separate state estate tax currently, federal estate tax planning remains relevant for larger estates and for coordinating with other estate planning goals. The exact tax effect depends on the timing of the transfer, the trust terms, and whether the insured retains any powers that cause inclusion. Proper structuring and early planning help avoid unintended tax consequences and ensure the trust achieves its intended benefits for beneficiaries.
The three-year lookback rule generally treats life insurance policies transferred within three years of the insured’s death as part of the insured’s taxable estate for federal estate tax purposes. This rule means that assigning a policy to an ILIT shortly before death may fail to remove the proceeds from the taxable estate. Planning well before that window closes reduces this risk and helps ensure the intended tax treatment of the trust. Because of the lookback provision, it is advisable to initiate transfers and funding arrangements well in advance when possible. If circumstances require transfers closer to the time of death, alternative strategies and careful legal review are needed to understand and mitigate potential estate inclusion.
A trustee should be someone trustworthy, organized, and capable of managing the administrative tasks associated with an ILIT, including paying premiums and communicating with beneficiaries. Options include a family member who is both reliable and willing to serve, a professional fiduciary, or a corporate trustee. Appointing successor trustees and co-trustees can provide continuity if the initial trustee can no longer serve. The trustee’s responsibilities include maintaining policy coverage, handling premium payments or coordinating funding, managing trust assets, and distributing proceeds according to the trust. Clear instructions in the trust document and guidance from counsel help trustees understand their duties and make decisions consistent with the grantor’s intentions.
Premium payments after transfer are handled according to the ILIT’s funding provisions. Common arrangements involve the grantor making gifts to the trust to cover premiums, with annual notices to beneficiaries where needed for gift-tax exclusion purposes. The trustee then uses trust funds to pay premiums, or the trust may hold a policy purchased directly by the trust that has a designated premium schedule. Documenting premium payments and gifts is important for tax compliance and to demonstrate that the trust has maintained sufficient funding. Planning how premiums will be provided and recorded reduces the risk of lapses in coverage and ensures the policy remains in force to provide the intended benefits to beneficiaries.
An ILIT can be designed to support a beneficiary who receives public benefits if drafted carefully. By structuring distributions and possibly creating a supplemental trust within the ILIT, funds can be directed in ways that do not disqualify a beneficiary from means-tested benefits. Legal language and trust administration must be tailored to balance providing support while protecting eligibility for critical programs. Consultation with counsel familiar with public benefits rules is important when planning for beneficiaries with special needs. Coordinated planning can create protective structures that supplement benefits without undermining eligibility, while providing long-term oversight and financial security for the beneficiary.
When the insured dies, the insurance company pays the death benefit to the ILIT, and the trustee administers the proceeds according to the trust terms. The trust may provide for immediate distributions to pay estate taxes, debts, and administration costs, or it may direct funds into separate subtrusts, periodic payments, or targeted uses such as education or health care. The trustee’s role is to follow the trust instructions and manage the funds prudently for beneficiaries. The process typically involves submitting the policy claim, obtaining a trust certification or court order if needed, and then distributing funds in a manner consistent with the trust. Clear trust provisions and competent administration help ensure prompt, orderly distribution and reduce the chance of disputes among beneficiaries.
Because an ILIT is irrevocable, changing or terminating it can be difficult, but mechanisms sometimes exist to modify trust terms within legal limits. Modification may be possible by consent of all beneficiaries, by court order, or through decanting statutes that permit one trust to be moved into another trust with different terms. Such options depend on the trust language and applicable state law, and they should be pursued with legal guidance to ensure compliance and to respect the grantor’s intent. Planning for flexibility at the outset, such as naming trustees with discretion and including well-considered successor provisions, can reduce the need for later modifications. Periodic review and legal advice help identify whether modification is appropriate given changed family circumstances or legal developments.
An ILIT interacts with a revocable living trust and pour-over will by coordinating beneficiary designations and ensuring assets pass in a consistent manner after death. While a revocable trust can hold many assets, the ILIT specifically holds life insurance policies and governs their proceeds. A pour-over will can direct assets to a revocable trust, but it does not replace the ILIT’s separate ownership and distribution rules for insurance proceeds. Harmonizing documents avoids unintended conflicts and ensures that all elements of the estate plan work together. Regular review of beneficiary designations, trust terms, and will provisions is important to maintain a coherent plan that reflects current wishes and family needs.
Common mistakes when creating an ILIT include delaying transfers until the three-year lookback period is a concern, failing to properly document assignments with the insurance company, and neglecting to fund premiums so the policy lapses. Another frequent issue is inconsistent beneficiary designations or trust provisions that conflict with other estate planning documents. These mistakes can undermine the intended tax and asset protection goals of the ILIT. Avoiding these pitfalls requires timely planning, careful documentation, and coordination with the insurer and other advisors. Clear drafting, proper execution, and ongoing administration help ensure the ILIT functions as intended and that beneficiaries receive the intended protections and benefits.
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