An irrevocable life insurance trust (ILIT) can be an important tool in thoughtful estate planning for families and individuals in Sunnyside-Tahoe City and throughout Placer County. This guide explains what an ILIT is, how it operates, and when it may be appropriate to place a life insurance policy outside of your taxable estate. If you own significant life insurance coverage, have concerns about estate tax exposure, or wish to ensure orderly distribution and management of policy proceeds for beneficiaries, an ILIT may offer advantages designed to align with your goals and family circumstances.
This page summarizes how an ILIT works in coordination with other estate planning documents such as a revocable living trust, last will and testament, powers of attorney, and health care directives. It also highlights practical considerations like choosing a trustee, funding mechanics, and annual gift transfers. Whether you already have a policy or are considering purchasing one through a trust, the information here will help you evaluate whether an ILIT fits into your broader plan and how it interacts with California estate rules and federal gift and estate considerations.
An ILIT helps remove life insurance proceeds from an estate for tax and creditor purposes, while providing structured access and control over distributions for beneficiaries. This is especially useful when policy proceeds might otherwise increase a taxable estate or pass directly to heirs who may need protection from creditors, divorce, or imprudent spending. An ILIT also allows you to name a trustee to manage proceeds, set conditions for distributions, and preserve benefits for minors or family members with disabilities. Thoughtful planning with an ILIT can help families provide for loved ones with predictability and clarity.
The Law Offices of Robert P. Bergman in Sunnyside-Tahoe City provides estate planning services for clients across Placer County and California, including revocable living trusts, irrevocable life insurance trusts, wills, powers of attorney, and health care directives. We draft documents such as trust certifications, pour-over wills, special needs trusts, pet trusts, retirement plan trusts, and Heggstad or trust modification petitions. Our approach focuses on clear communication, careful document drafting, and tailored planning that reflects each client’s family structure, assets, and goals while complying with California law and practical administration needs.
An ILIT is a trust that owns and is the beneficiary of a life insurance policy, and it is drafted so that the policy and its proceeds are outside of the policyholder’s taxable estate. Typically the trust is drafted as irrevocable, meaning the grantor cannot later alter ownership of the policy without tax consequences. To be effective, the trust must be properly funded and administered, and the timing of transfers and ownership changes must be handled with attention to gift tax rules and the three-year rule that can pull proceeds back into an estate if certain transfers occurred too close to death.
Setting up an ILIT usually involves naming trustees who will own the policy, drafting trust terms that govern distributions, and arranging annual contributions to cover premiums through gift transfers that may rely on the annual exclusion. The trustee manages the policy, handles notices such as Crummey letters when appropriate, and receives proceeds at the insured’s passing for distribution under the trust terms. Proper coordination with beneficiary designations, retirement accounts, and other planning vehicles is necessary to ensure the trust functions as intended and aligns with the rest of the estate plan.
An irrevocable life insurance trust is a legal arrangement where the trust, rather than the individual, holds ownership of a life insurance policy and is named as the beneficiary. That structure keeps the insurance proceeds from being included in the insured’s probate estate, provided the trust and transfers are handled correctly. The grantor gives the trustee authority to administer the policy and make distributions to beneficiaries under the terms set by the grantor. Because the trust is irrevocable, the grantor typically cannot change the terms, which helps secure the intended protections for beneficiaries.
Creating an ILIT involves several important steps including drafting the trust instrument, selecting a reliable trustee, transferring or purchasing a life insurance policy in the name of the trust, and planning annual gift contributions to cover premiums. The trust document should set out distribution provisions, trustee powers, and instructions for managing investments and paying premiums. Careful timing and documentation of gifts are also important to preserve the intended tax results and to comply with both federal and state requirements, and to ensure the trust will operate smoothly when proceeds are received.
Understanding common terms related to ILITs can make it easier to follow the planning and administration process. Familiarity with phrases such as Crummey notice, annual gift tax exclusion, transfer of ownership, trustee duties, and the three-year rule helps you see how decisions affect tax status and beneficiary access. Clear definitions reduce surprises and support informed decisions about trust structure, funding, and ongoing administration. This glossary provides plain-language explanations to help you navigate discussions with your counsel and trustee.
An ILIT is a trust established to hold and control one or more life insurance policies outside of the policy owner’s taxable estate. The trust is irrevocable so that the grantor’s ability to alter the trust is limited, which helps achieve certain tax and asset protection objectives. The trust document specifies who will manage the policy, how premium payments will be handled, and how proceeds will be distributed to beneficiaries. Properly structured and administered, an ILIT can preserve the intended benefits for heirs while keeping proceeds from being subject to probate or estate taxes.
A Crummey withdrawal right is a temporary power given to trust beneficiaries allowing them a short window to withdraw a gift contributed to the trust; it creates a present interest that qualifies for the annual gift tax exclusion. To support the withdrawal right, trustees typically send a Crummey notice to beneficiaries informing them of the contribution and their limited withdrawal window. If beneficiaries do not exercise the withdrawal option, funds remain in the trust and are used for premiums or trust purposes. Properly documenting these notices and the passage of time is important for compliance with tax rules.
The annual gift tax exclusion allows individuals to give a certain dollar amount to another person without using lifetime exemption amounts for gift tax purposes. When funding an ILIT, grantors often use the annual exclusion to make premium contributions to beneficiaries who are given Crummey withdrawal rights. Proper allocation and documentation of these gifts help preserve favorable tax treatment. It is also important to consider the timing of transfers and any applicable federal rules that could affect estate inclusion if transfers occur within a certain period before death.
The trustee is the person or entity appointed to manage the trust and its assets, including the life insurance policy, while beneficiaries receive the trust’s benefits according to the trust terms. The trustee’s duties may include paying premiums, providing notices, filing tax returns for the trust if required, and making distributions. Beneficiaries typically enjoy protections and controls established by the grantor, such as staged distributions or spendthrift provisions. Choosing a trustee who will act responsibly and in alignment with the grantor’s goals is an important planning decision.
An ILIT differs from simply naming beneficiaries on a life insurance policy or relying on a revocable living trust because it separates policy ownership from the insured’s estate and sets terms for distribution under an irrevocable document. A revocable trust offers flexibility but does not remove assets from an estate during the grantor’s life. Beneficiary designations provide direct access to proceeds but lack protective features and tax treatment that a trust can provide. Choosing between options depends on goals such as tax planning, protection for beneficiaries, and the desire for controlled distributions over time.
If a policy has modest proceeds and your estate is unlikely to face significant tax exposure or creditor claims, simple beneficiary designations can be an efficient solution. In this context, keeping the policy ownership and beneficiary designations straightforward may reduce complexity and fees. Beneficiaries receive proceeds quickly without the need for trust administration. However, this approach offers less protection against creditors or mismanagement, and it provides little structure for distributing funds to minors or vulnerable beneficiaries, so it is most appropriate when simplicity and direct transfer are the primary priorities.
When life insurance coverage is small relative to other assets and the estate’s tax exposure is minimal, a limited approach may be cost-effective and easier to manage. Families with straightforward distributions and no specific concerns about creditor claims or special needs beneficiaries may prefer this route. It can also be appropriate when the administrative burden or cost of an irrevocable trust outweighs the perceived benefits. Even in these cases, reviewing how beneficiary designations interact with other estate documents is recommended to avoid unintended outcomes.
For clients with large policies or estates approaching federal or state thresholds, placing insurance in an ILIT can be a powerful way to keep proceeds out of the taxable estate and provide a layer of protection from creditors. When properly drafted and funded, an ILIT removes ownership from the insured, which can reduce estate inclusion and provide structured disbursements to heirs. Coordinating the ILIT with other estate planning documents such as revocable trusts, wills, and beneficiary designations is essential to achieve the intended results and avoid conflicts or unintended tax consequences.
If you wish to protect proceeds for minors, beneficiaries with disabilities, or family members who might benefit from supervised distributions, an ILIT offers flexible drafting options such as staggered distributions and spendthrift provisions. These terms can ensure that funds are used for education, health, and support while guarding against dissipation or creditor claims. For families concerned about long-term care planning, special needs considerations, or blended family dynamics, a trust-centered plan provides a way to tailor distributions to beneficiaries’ needs over time.
A comprehensive approach that integrates an ILIT with a revocable living trust, wills, and other estate documents promotes clarity, reduces the risk of disputes, and supports coordinated tax and asset protection planning. Centralizing instructions and beneficiary designations helps ensure that life insurance proceeds are applied consistently with your legacy goals. It also provides a framework for ongoing administration, beneficiary communications, and adjustments to reflect changing family circumstances, subject to the limits of irrevocable provisions where applicable.
Comprehensive planning can also address secondary considerations such as selecting successor trustees, preparing Heggstad or modification petitions when circumstances require court action, and aligning retirement plan trusts or pour-over wills with insurance-related objectives. This holistic view helps reduce surprises after death and can ease the administrative burden on family members. By addressing various contingencies in advance, you can create a durable plan that better protects family wealth and supports orderly transitions across generations.
An ILIT can help mitigate estate tax exposure when used in coordination with other planning tools, preserving the value of life insurance proceeds for intended beneficiaries. By removing ownership of the policy from the insured’s estate, proceeds may avoid estate inclusion and pass under trust terms that limit exposure to taxes and creditors. This design protects family wealth and ensures that proceeds are used according to your wishes, whether for income replacement, education, debt repayment, or to provide liquidity for estate administration without burdening heirs with immediate tax obligations.
Trust terms can be written to provide controlled distributions that support long-term needs without exposing funds to beneficiary creditors or impulsive spending. Features such as spendthrift clauses, staged payments, and trustee discretion allow for tailored stewardship of proceeds. For families with members who have special needs, limited financial experience, or creditor exposure, these protections provide peace of mind that resources will be managed responsibly to provide sustained benefit rather than a lump-sum payment that could be lost or subject to claims.
Choosing the right trustee is a key decision when creating an ILIT because that person or entity will manage the policy, handle premium payments, provide notices to beneficiaries, and carry out distribution instructions. Consider a trustee who understands fiduciary duties, communicates well with family members, and has the ability to coordinate with financial and tax advisors if needed. Naming successor trustees and providing guidance for common scenarios will help ensure continuity of administration and reduce the likelihood of disputes or delays after the insured’s passing.
Proper documentation of annual gift contributions to the ILIT and any Crummey notices delivered to beneficiaries is essential to support tax positions and to demonstrate that transfers qualified for the annual gift tax exclusion. Keep clear records of premium payments, trustee actions, and correspondence. Regularly revisiting the trust funding approach and maintaining accurate files will simplify trust administration, help respond to inquiries from tax authorities if necessary, and ensure that the trust’s intended benefits are preserved for beneficiaries.
You may consider an ILIT if you want life insurance proceeds to be managed and distributed under trust terms rather than passing directly to beneficiaries, if you seek to reduce estate inclusion, or if you wish to protect proceeds from potential creditor claims. An ILIT is also useful for providing structured support for minor children, family members with special needs, or beneficiaries who may benefit from stewardship over time. The trust form creates an added layer of planning anatomy that can preserve family wealth according to your specific intentions.
Another reason to consider an ILIT is to provide liquidity for estate settlement, income replacement, or to equalize inheritances among heirs when other assets are illiquid. The trust can be tailored to fund long-term obligations while ensuring that distributions are applied for specified purposes such as education, medical care, or ongoing support. When combined with other estate planning measures like pour-over wills and certification of trust documents, an ILIT can serve as an integral component of a cohesive plan that anticipates practical administration after death.
Situations that commonly prompt the creation of an ILIT include ownership of large life insurance policies, concern about estate tax exposure, plans to provide for beneficiaries who need managed distributions, and a desire to protect proceeds from creditor or divorce claims. Business owners, property owners with illiquid holdings, and families with complex intergenerational goals often use ILITs to preserve capital while defining distribution rules. Each circumstance calls for a tailored approach to trust drafting and funding to align with the grantor’s objectives and family dynamics.
When life insurance policies are substantial relative to the rest of an estate, placing ownership in an ILIT can prevent proceeds from being counted in the insured’s estate for tax purposes. This approach also ensures that funds are available to pay estate settlement costs or provide liquidity without forcing a sale of real estate or business interests. The trust framework allows for specific instructions about how proceeds should be used and distributed, which can reduce the administrative burden on family members while protecting the intended legacy.
Individuals concerned about federal estate taxes or state-level implications may use an ILIT to remove insurance proceeds from the taxable estate, provided the trust is properly structured and funded. An ILIT can help manage the timing and documentation of transfers to qualify for annual exclusions and preserve other tax planning strategies. For those with estates that approach exemption thresholds, an ILIT offers a practical mechanism to preserve the value of life insurance proceeds for heirs without increasing estate tax exposure.
If you have beneficiaries who are minors, have special needs, or face creditor exposure, an ILIT can impose terms that provide supervised distributions for health, education, maintenance, and support while protecting assets from claims. Trust provisions can be tailored to preserve public benefits where relevant, and to appoint trustees who will prioritize beneficiaries’ long-term well-being. These protections can be essential for families who want to ensure that insurance proceeds are used thoughtfully over time rather than being immediately dissipated.
We are here to help residents of Sunnyside-Tahoe City and surrounding Placer County with estate planning matters, including revocable living trusts, irrevocable life insurance trusts, last wills and testaments, powers of attorney, advance health care directives, and guardianship nominations. You can contact our office at 408-528-2827 to discuss how an ILIT might fit into your overall plan. We prepare supporting documents such as certification of trust, general assignment of assets to trust, pour-over wills, HIPAA authorizations, and petitions for trust modification when circumstances change.
Clients choose our firm because we provide practical, locally focused estate planning services tailored to family circumstances in Sunnyside-Tahoe City and across California. We assist with designing trusts and drafting documents that coordinate life insurance ownership, beneficiary designations, and trust administration. Our goal is to produce clear, durable documents that reduce ambiguity and support smooth administration, whether your objectives are tax planning, asset protection, or providing structured care for loved ones.
Our approach emphasizes careful planning, clear communication, and responsiveness throughout the drafting and funding process. We work collaboratively to identify family priorities, explain how different provisions operate, and prepare the necessary documentation to implement an ILIT effectively. We can also guide you through coordinating the trust with other planning elements like retirement plan trusts, special needs trusts, pet trusts, and guardianship nominations so the whole estate plan functions coherently.
We help clients complete the practical steps required to put an ILIT into effect, including drafting trust language, transferring or purchasing policies in trust name, preparing Crummey notices if needed, and documenting annual premium contributions. Our firm can also assist with related documents such as revocable living trusts, pour-over wills, financial powers of attorney, HIPAA authorizations, and certification of trust. To discuss your circumstances and phone-based scheduling, contact us at 408-528-2827 for a consultation.
Our process for creating an ILIT begins with a detailed discussion of your family goals and financial picture, followed by document drafting, coordination of policy ownership, and assistance with funding mechanics. We explain the tax and timing considerations, prepare the trust agreement and necessary notices, and provide guidance on trustee duties and recordkeeping. After the trust is established, we remain available to advise on administration questions, annual contributions, and any required filings so the trust functions as intended.
The first stage involves gathering information about existing life insurance policies, assets, family circumstances, and planning objectives. We review current estate documents, beneficiary designations, and financial accounts to identify any conflicts or coordination needs. This assessment helps determine whether an ILIT is appropriate, how it should be structured, and whether other planning measures are necessary. Clear initial planning reduces the risk of unintended tax consequences and helps define the trustee’s role and trust distribution provisions.
Collecting accurate information about policy ownership, beneficiary designations, premium amounts, and related assets is essential. We ask clients to provide copies of insurance contracts, trust documents, wills, and account statements so we can evaluate interactions between assets. Understanding the size and nature of policies, whether policies are new or existing, and the names on ownership and beneficiary lines will inform the recommended drafting and funding strategy. Thorough preparation at this stage prevents surprises later in the process.
We work with clients to identify intended beneficiaries, discuss trustee candidates and successor arrangements, and plan how premiums will be funded. This includes evaluating whether to transfer an existing policy to the trust or to have the trust purchase a new policy, and whether annual exclusion gifts or other funding mechanisms are preferable. Clear decisions about distributions, contingencies, and communication expectations will be incorporated into the trust draft so the administration phase proceeds smoothly.
In the drafting phase we prepare the trust instrument with precise language that addresses ownership, trustee powers, distribution rules, spendthrift protections, and any special provisions for beneficiaries with unique needs. We also draft supporting documents such as trustees’ instructions, Crummey notice templates, and certification of trust forms for third parties. After review and revisions, we execute the trust and coordinate the transfer or issuance of the insurance policy in the trust’s name to complete the ownership change.
The trust agreement sets out the mechanics for ownership and distribution of policy proceeds, specifies trustee powers for managing premiums and investments, and includes provisions for successor trustees and dispute resolution. Clear trustee instructions can reduce administrative friction and ensure timely premium payments and notices. We prepare these documents with attention to practical administration and the statutory requirements in California, and we explain each provision to the grantor so the policyholder understands the operational impact of irrevocable terms.
Once the trust is executed, we assist with transferring existing policies into the trust or having new policies issued to the trust as owner and beneficiary. This requires coordination with the insurance company to update ownership and beneficiary designations, and careful timing to avoid unwanted estate inclusion. We also prepare any necessary notices to beneficiaries and documentation of transfers so that the action is supported by a clear paper trail, which is important for both administration and tax compliance purposes.
After the ILIT is established and the policy is owned by the trust, ongoing administration includes making premium payments, documenting annual gifts, sending Crummey notices when applicable, and managing trust assets until proceeds are paid out. Trustees must keep accurate records and follow distribution instructions in the trust. Periodic reviews are advisable to ensure that the trust remains aligned with estate goals and that beneficiary circumstances or policy ownership changes are addressed in a timely manner.
If you transfer an existing policy into the ILIT, expect coordination with the insurer and careful attention to timing and documentation to avoid estate inclusion under applicable rules. Alternatively, a trust can be the owner and applicant for a new policy. Either route requires clear instructions for premium funding and trustee responsibilities. Proper execution and recordkeeping at the time of transfer or purchase helps preserve the trust’s intended tax and administrative benefits and prevents unintended consequences.
Premiums are often paid by beneficiaries on behalf of the trust through annual gifts that qualify for the gift tax exclusion when accompanied by Crummey withdrawal rights. Trustees should document gifts and the delivery of notices to preserve the tax treatment. Regular administrative practices like maintaining records of contributions, providing periodic accountings if required, and coordinating with tax advisors will support the trust’s continued effectiveness and reduce uncertainty for beneficiaries and fiduciaries.
An irrevocable life insurance trust is a trust designed to own one or more life insurance policies and to receive the policy proceeds upon the insured’s death. The trust document is irrevocable, meaning the grantor generally cannot reclaim ownership or alter the trust terms without tax and legal consequences. Ownership by the trust can keep proceeds out of the insured’s taxable estate when the trust is properly funded and administered. The trustee manages the policy, pays premiums as arranged, and distributes proceeds according to the trust terms. To work effectively, the ILIT must be properly executed and the policy must be owned by the trust. Funding often involves annual gift contributions from the grantor to beneficiaries who are given short withdrawal rights, usually supported by Crummey notices, so contributions qualify for the annual gift tax exclusion. Proper timing, documentation, and coordination with other estate planning documents are essential to achieve the intended tax and protective benefits.
Transferring a life insurance policy to an ILIT can create a gift for tax purposes, but many transfers are structured so that annual contributions from the grantor qualify for the annual gift tax exclusion. This is typically accomplished by giving beneficiaries limited withdrawal rights for a short period, which converts the contribution into a present interest eligible for the exclusion. Accurate documentation and timely delivery of notices are important to support the exclusion claim and avoid unintended gift tax consequences. If the transferred policy’s value or the aggregate gifts exceed the annual exclusion amounts, the excess may require use of part of the lifetime gift tax exemption or the filing of gift tax returns. There is also a three-year rule under federal law that may cause proceeds to be included in the insured’s estate if the insured transferred ownership within three years of death. Careful planning and timing help minimize these risks and preserve the desired tax treatment.
Once an ILIT is executed as an irrevocable trust, the grantor’s ability to change its terms or beneficiaries is limited. The irrevocable nature is what creates the separation between the grantor and the trust for tax and protection purposes. While some trusts include mechanisms for limited amendment under narrowly defined circumstances, broad changes are generally not possible without consent of the trustee and beneficiaries or through court petitions. Therefore, it is important to draft the trust with flexibility where appropriate and to consider foreseeable future needs before execution. If changes become necessary due to changed family circumstances or tax law shifts, there are legal options such as trust decanting, modification petitions, or court-approved changes in some jurisdictions, but these approaches require careful legal review and are not routine. For these reasons, planning with an eye toward likely contingencies, naming thoughtful trustees and successors, and documenting intent clearly at the outset helps reduce the need for later revisions.
Crummey notices are communications sent to trust beneficiaries to inform them that a gift has been made to the trust and that they have a limited period to withdraw their pro rata share. This short withdrawal right is necessary to create a present interest in the gift, which allows the contribution to qualify for the annual gift tax exclusion under federal rules. The notices should be timely and clearly describe the withdrawal opportunity and the time frame in which it must be exercised. Even if beneficiaries do not exercise the withdrawal right, delivering the notice and allowing the opportunity supports the tax treatment for the grantor’s contribution. Trustees should keep records of notices and the passage of withdrawal periods as part of the trust’s administration. Properly drafted notice templates and documentation practices reduce the risk of disputes and help maintain the intended gift tax results.
Selecting the trustee for an ILIT is a vital decision because the trustee will own the policy, pay premiums, issue notices, and distribute proceeds under the trust terms. Consider trustees who are trustworthy, organized, and capable of handling fiduciary duties over time. Options include a trusted family member, a close friend with financial acumen, a private fiduciary, or a corporate trustee. Each option has pros and cons: family members may offer personal knowledge and lower cost, while institutional trustees can offer continuity and professional administration. It is also important to name successor trustees and provide clear instructions in the trust document regarding compensation, decision-making authority, and powers to invest or manage trust assets. Discussing the trustee role with the selected individuals and documenting expectations ahead of time reduces the risk of disputes and ensures smoother administration when actions are required.
If you transfer an existing life insurance policy to an ILIT shortly before death, federal rules may bring the policy’s proceeds back into your estate for estate tax purposes if the transfer occurs within a specified look-back period. This is commonly referred to as the three-year rule, which can treat certain transfers made within three years of death as still belonging to the decedent’s estate for tax calculation. Because of this rule, timing is a critical consideration when transferring ownership of an existing policy. To avoid unintended inclusion under these rules, planning ahead is recommended. If an immediate need exists, other strategies might be available depending on circumstances, but each has trade-offs. Early coordination with legal counsel helps evaluate options, consider alternative funding mechanisms, and minimize the risk that the desired tax and protective benefits will be negated by untimely transfers.
An ILIT works alongside a revocable living trust and wills by addressing the specific role of life insurance within the broader estate plan. While a revocable trust can manage assets during incapacity and probate avoidance, the ILIT specifically holds life insurance outside the grantor’s estate. Pour-over wills and certification of trust documents can be used to coordinate assets and confirm trust terms to third parties. Clear integration prevents conflicts between beneficiary designations and trust terms, ensuring that insurance proceeds are distributed as intended rather than being diverted by inconsistent forms. It is important to review all estate planning documents together to ensure they reflect consistent intentions. Beneficiary designations on retirement plans or insurance policies that conflict with trust terms can override trust provisions unless ownership has been properly transferred. Regular reviews and updates after major life events or changes in asset ownership help keep the entire plan aligned and functional.
Yes. An ILIT can be tailored to protect proceeds for beneficiaries with special needs by including distribution provisions that preserve eligibility for public benefits and direct funds for supplemental needs such as therapy, education, or medical care. A separate special needs trust may be coordinated with the ILIT or the ILIT can be drafted to fund a special needs trust on the beneficiary’s behalf. Clear drafting ensures that proceeds provide meaningful support without jeopardizing government benefits that the beneficiary may rely on. When structuring such arrangements, careful attention is needed to avoid inadvertently disqualifying benefits or creating taxable events. Language that specifies permissible uses of funds and empowers trustees to make distributions for supplemental needs is commonly used. Working with counsel to align the ILIT with special needs planning and to communicate the plan’s intent to trustees reduces the risk of administration problems and supports long-term financial security for the beneficiary.
A trustee’s administrative duties for an ILIT commonly include maintaining trust records, paying policy premiums, sending Crummey notices when applicable, keeping accurate documentation of gift contributions and withdrawals, and communicating with beneficiaries about notices and distributions. Trustees may also be responsible for filing any required trust tax returns, coordinating with insurance companies, and executing distribution provisions according to the trust terms. Keeping detailed records and adhering to the trust’s instructions are central to fulfilling fiduciary responsibilities. Trustees should also be prepared to manage practical issues such as locating and producing the policy upon the insured’s death, liaising with insurers to claim proceeds, and working with legal or tax advisors if complexities arise. Selecting a trustee who will maintain organized records and follow clear administrative practices helps ensure timely premium payments and preserves the trust’s intended tax and protective results.
An ILIT and related estate planning documents should be reviewed periodically and after major life events such as births, deaths, marriages, divorces, large changes in asset values, or changes in tax law. Regular reviews help ensure that trust terms remain aligned with your objectives and that funding mechanisms and beneficiary designations continue to work as intended. Such reviews also allow for updating supporting documents like powers of attorney or health care directives to reflect current wishes and circumstances. Even if circumstances remain stable, a periodic review every few years is a prudent practice to confirm that the trust administration procedures and recordkeeping are current. Ongoing oversight helps identify and address practical issues such as changes in insurance company procedures, trustee availability, or administrative best practices, and supports a smoother transition when the trust becomes operative.
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