An Irrevocable Life Insurance Trust (ILIT) can be a powerful estate planning tool for Pedley residents who wish to manage life insurance proceeds outside of their taxable estate. At the Law Offices of Robert P. Bergman, our firm helps families consider how an ILIT may support long-term financial and legacy goals while providing liquidity for estate expenses. This overview explains what an ILIT is, how it functions, and the ways it may reduce estate-related tax exposure, safeguard policy proceeds for beneficiaries, and support orderly asset transfer across generations without creating undue administrative burden for survivors.
Choosing to establish an ILIT involves careful planning and coordination with life insurance carriers, trustees, and family members. The trust must be drafted to meet legal requirements and to align with broader estate documents like wills, trusts, powers of attorney, and health care directives. Our approach focuses on clear communication, practical drafting, and ensuring beneficiaries receive the intended benefits efficiently. We discuss funding strategies, premium payment arrangements, and the duties of the trustee so clients understand how the ILIT will operate over the long term and how it interacts with other estate planning instruments.
An ILIT serves multiple estate planning purposes: it can remove life insurance proceeds from a taxable estate, protect proceeds from probate, and control distributions to beneficiaries. For homeowners, business owners, or those with significant retirement accounts, an ILIT offers a way to provide immediate liquidity to pay taxes, debts, or administration costs without forcing the sale of assets. Additionally, an ILIT can be structured to provide regular distributions, protect funds for younger beneficiaries, or preserve benefits for family members with special needs. Thoughtful drafting helps ensure the trust provisions reflect the settlor’s intentions and current state law.
The Law Offices of Robert P. Bergman has guided California families through comprehensive estate planning matters including living trusts, wills, powers of attorney, and trusts tailored to life insurance. Our firm provides practical, client-centered counsel that focuses on clarity and long-term administration. We assist with drafting trust documents, coordinating with insurance providers, preparing trust funding documents, and advising trustees on administration duties. We emphasize communication, timely drafting, and realistic planning so clients know what to expect and beneficiaries are positioned to receive benefits in the manner intended by the trustmaker.
An ILIT is a trust created to own one or more life insurance policies where the trust, rather than the insured individual, is the policy owner and beneficiary. Once established and funded according to legal requirements, the trust controls how death proceeds are managed and distributed. The irrevocable nature of the arrangement generally prevents the insured from reclaiming ownership, which is why timing, premium payment methods, and trust terms must be carefully arranged. An ILIT can be a central part of a comprehensive estate strategy by helping manage potential estate tax matters and providing a clear plan for distribution of policy proceeds to beneficiaries.
Creating an ILIT requires coordination with insurance companies to transfer existing policies or to issue new policies owned by the trust. Grantors typically make gifts to the trust or employ other funding mechanisms so the trustee can pay premiums. The trustee’s responsibilities include maintaining the policy, making premium payments, filing tax forms when necessary, and distributing proceeds according to the trust terms. It is important to consider gift tax implications, the three-year transfer rule, and how the ILIT will function alongside a pour-over will or other trust arrangements to ensure beneficiaries receive the intended protections and benefits.
An ILIT is a legally binding trust designed to own life insurance policies for the benefit of named beneficiaries. The trust document specifies the trustee’s powers, distribution rules, and any conditions for beneficiary access. Because the grantor generally relinquishes ownership and control of the policy, the death benefit is payable to the trust and managed under the terms set forth, which can include staged distributions, trust income for dependents, or preservation for long-term needs. Proper timing and funding are essential to ensure the proceeds are excluded from the grantor’s estate and to minimize unintended tax or administrative consequences.
Establishing an ILIT involves drafting trust language, naming a trustee, transferring or purchasing the policy in the trust’s name, and setting up premium funding arrangements. The trust document should describe distribution standards, successor trustees, and trustee powers for policy management and investment of proceeds. Trustees must keep accurate records, coordinate with beneficiaries and advisors, and meet reporting requirements. Attention to the timing of transfers is required to avoid estate inclusion. Ongoing review ensures the ILIT reflects changes in family dynamics, tax law, and financial circumstances so the plan continues to function as intended.
Familiarity with common terms helps clients make informed decisions when creating an ILIT. Important concepts include grantor, trustee, beneficiary, policy ownership, gift tax, estate inclusion rules, and powers of appointment. Knowing these definitions clarifies how transfers and premium payments affect estate status and how distributions will be handled. This section provides concise definitions and context so clients can understand trust mechanics, administrative duties, and tax considerations when coordinating an ILIT with other estate planning documents like revocable living trusts, pour-over wills, powers of attorney, and health care directives.
The grantor is the person who creates the trust and transfers assets or establishes the terms under which a trust operates. In an ILIT arrangement, the grantor typically establishes the trust to own a life insurance policy and may make gifts to support premium payments. Once the trust is established and properly funded, the grantor generally loses direct control over the policy and trust assets. Understanding the grantor’s choices and the timing of transfers is essential to achieving the desired estate and tax outcomes, and to ensuring the trust aligns with broader planning documents and family goals.
The trustee is the individual or entity responsible for managing the trust according to its terms and applicable law. Responsibilities include maintaining the insurance policy, making premium payments, filing required tax forms, and distributing proceeds to beneficiaries as directed by the trust document. Trustees must act in the beneficiaries’ best interests and keep accurate records. Successor trustee provisions are common so administration continues smoothly if the primary trustee becomes unable to serve. Trustees play a central role in ensuring the ILIT functions as intended after the grantor’s passing.
Policy ownership refers to who holds the legal rights to a life insurance contract. In an ILIT, the trust is designated as owner and beneficiary, so proceeds are payable to the trust and governed by its terms rather than to a named individual. This ownership shift changes how proceeds are treated for estate purposes and can remove the policy from the insured’s taxable estate if handled correctly. Proper beneficiary designation and coordination with carrier paperwork are required to avoid inadvertent estate inclusion and to ensure distributions align with the grantor’s intentions.
Gift tax rules can affect funding an ILIT, particularly when transferring a policy into the trust or making gifts to the trust for premium payments. The three-year rule provides that if the grantor transfers an existing policy to the trust and dies within three years of the transfer, the policy proceeds may be included in the grantor’s estate for tax purposes. Planning around this timing and coordinating new policies or other funding strategies helps minimize unintended estate inclusion. Clients should understand how gifting, annual exclusion, and applicable tax rules influence ILIT funding choices.
An ILIT serves different purposes than a revocable living trust or a basic beneficiary designation. While revocable trusts offer flexibility and control during the grantor’s life, an ILIT specifically aims to remove life insurance proceeds from the taxable estate and to control distribution of those proceeds after death. For some families, other arrangements such as payable-on-death accounts or direct beneficiary designations may be sufficient, but those options may expose proceeds to creditors or probate. A thoughtful comparison considers tax goals, creditor protection, beneficiary needs, and the desire for controlled distributions over time.
In situations where the overall estate is modest and estate tax exposure is unlikely, a straightforward beneficiary designation or a revocable trust may satisfy planning goals without establishing an ILIT. Simpler arrangements reduce administrative complexity and costs, and they allow proceeds to pass quickly to named beneficiaries. Clients should consider current asset levels, projected growth, and family circumstances before choosing a limited approach, and they should confirm that chosen beneficiary designations align with broader planning documents and any intentions regarding asset protection or staged distributions for heirs.
When the primary objective is to provide immediate liquidity for a surviving spouse or dependent and there is no concern about estate inclusion or creditor claims, a direct beneficiary designation can be effective. This approach enables proceeds to bypass probate and be paid directly to the named beneficiary without trust administration. However, direct transfers offer less control over how funds are used and may not protect assets from creditors or marital claims. Understanding the trade-offs helps ensure the chosen method meets both short-term needs and long-term family intentions.
Comprehensive planning helps align an ILIT with other estate documents like revocable living trusts, pour-over wills, powers of attorney, and advance health care directives. Coordination reduces the risk of conflicting provisions, unintended tax exposure, or gaps in administration. A full-service approach ensures policies are titled correctly, funding mechanisms are in place, and trustees are equipped to carry out duties. It also allows for contingency planning so beneficiaries receive intended benefits smoothly, and ensures estate administration is efficient and consistent with the grantor’s overall goals.
When tax planning, creditor protection, or complex family situations are present, a comprehensive plan reduces the risk of unintended consequences. An ILIT can be part of a broader strategy to manage estate taxes, provide creditor safeguards, and preserve assets for specific beneficiaries such as minor children or family members with special needs. Comprehensive counsel helps design trustee powers, distribution rules, and funding strategies tailored to family circumstances and financial realities, and it supports consistent administration across changing life events and legal developments.
A comprehensive approach to establishing an ILIT helps prevent administrative confusion and ensures the trust interacts correctly with existing retirement accounts, real property, and estate documents. Coordinated planning reduces the likelihood of claims against the estate, simplifies transition of management to trustees, and provides clarity for beneficiaries. Well-drafted trust provisions enable orderly distributions, minimize tax implications where possible, and provide flexibility for changing family circumstances. This kind of planning supports peace of mind by documenting clear intentions and practical steps for implementation and after-death administration.
Comprehensive planning also anticipates contingencies such as disability, remarriage, or changes in asset values, and it provides mechanisms for successor trustees to act without court intervention. By coordinating premium payment methods, gift strategies, and recordkeeping, an ILIT can function smoothly over the long term. Beneficiaries benefit from reduced administration delays and clear distribution rules. The firm’s role is to help organize documents, implement funding strategies, and guide trustees in carrying out their responsibilities while keeping the grantor’s intentions central to the plan.
An ILIT can provide liquidity to cover estate taxes, final expenses, and administration costs without forcing the sale of family assets such as a business or home. Removing insurance proceeds from the estate may reduce estate tax exposure and allow heirs to retain ownership of significant assets. Proper planning and timing of transfers and premium funding are important to ensure the intended tax treatment. An integrated plan anticipates these needs and arranges for the trustee to have the resources necessary to meet obligations while honoring distribution preferences expressed by the grantor.
A trust structure allows the grantor to set conditions or schedules for beneficiary distributions that reflect family priorities and long-term protection goals. For families concerned about young heirs, spending habits, or creditor claims, an ILIT provides mechanisms to tailor distributions, require milestone events, or set discretionary standards for trustees. This control helps preserve assets for intended uses such as education, care for dependents, or transfer to future generations. Clear drafting and carefully chosen trustee powers help balance protection with flexibility to adapt to changing circumstances.
Begin the process of titling the life insurance policy in the trust name early to avoid the three-year rule and other timing complications. Early coordination with the insurance carrier ensures the trust is listed correctly as owner and beneficiary and that premium payment mechanisms are established. Keeping detailed records of transfers, premium gifts, and trustee actions supports smooth administration and helps demonstrate that the policy was effectively removed from the grantor’s estate. Early action also leaves time to address any carrier requirements and to select appropriate trustee and successor trustee arrangements.
Choose a trustee or co-trustees who can manage administrative duties such as paying premiums, communicating with beneficiaries, and handling trust investments. Formal trustee succession planning helps ensure continuity if the primary trustee becomes unavailable. Trustees should be provided with clear trust language and access to necessary records so they can fulfill obligations efficiently. When appropriate, consider appointing a corporate trustee or co-trustees to provide additional administrative support and impartial oversight, while balancing cost considerations and the family’s preference for personal involvement.
Consider an ILIT when you want to ensure life insurance proceeds are managed outside of your taxable estate, to provide liquidity for estate obligations, or to protect benefits for specific family members. An ILIT may be appropriate for business owners, property owners, or those with significant retirement accounts who want to preserve those assets for heirs while using life insurance to address estate tax or liquidity needs. The trust structure adds control over distributions and can shelter proceeds from probate, creditor claims, or unwanted immediate distribution to beneficiaries who may not be prepared to manage large sums.
Families who value controlled distributions for minor children, beneficiaries with special needs, or those who face potential creditor exposure often find an ILIT helpful. It allows the grantor to define conditions, timelines, or standards for trustee distributions that reflect family priorities. Couples may also use an ILIT to provide a source of funds for a surviving spouse while preserving other assets for heirs. The decision should weigh administrative complexity against long-term benefits and be integrated with other planning documents to ensure consistent results across the estate plan.
Common reasons to establish an ILIT include managing estate tax exposure, protecting policy proceeds from probate, providing for minor children or dependents with ongoing needs, and ensuring business succession liquidity. Those with significant life insurance holdings who wish to preserve family assets or coordinate benefits with retirement accounts and trusts often use an ILIT. Additionally, individuals concerned about potential creditor claims or remarriage may use trust structures to set terms that reflect their wishes for beneficiary protection and long-term financial stewardship after their passing.
Placing a life insurance policy in an ILIT can prevent the death benefit from becoming part of the probate estate, which can speed distribution and reduce administrative exposure. This protection is particularly relevant when beneficiaries rely on timely access to funds for immediate needs or when estate administration might otherwise require liquidation of assets. Proper setup ensures the trust is named as owner and beneficiary and that trustee procedures are in place for prompt claims and distributions consistent with the grantor’s intentions and the trust’s terms.
An ILIT can be designed to provide liquidity for taxes, debts, and administrative costs so that heirs are not forced to sell family businesses or real property to meet obligations. By removing life insurance proceeds from the estate and arranging clear trustee instructions for distributions, funds are available to cover immediate obligations while preserving other assets for long-term inheritance. Thoughtful funding and trustee planning ensure premiums are paid and that the trust is positioned to fulfill its role when the need arises.
For beneficiaries who are minors, have special needs, or may face creditor exposure, an ILIT provides a controlled vehicle to manage distributions over time. The trust can set distribution standards tied to age milestones, education needs, or medical care, and can authorize trustee discretion to address changing circumstances. This structure helps preserve assets for long-term benefit while balancing flexibility for unforeseen family needs. Proper drafting is important to align trust provisions with public benefits considerations and to avoid unintended disqualification from government programs.
The Law Offices of Robert P. Bergman serves individuals and families in Pedley and Riverside County with personalized estate planning counsel focused on preserving family wealth and ensuring clear transfer of assets. We help clients evaluate whether an ILIT fits their goals, assist with drafting and funding trust documents, coordinate with insurance carriers, and advise trustees on administration. Our team values clear communication and practical solutions so clients feel confident about their plans and families experience a smooth transition when a trust becomes active following a death.
Clients choose the Law Offices of Robert P. Bergman for straightforward, client-focused estate planning assistance that addresses both immediate needs and long-term goals. We work with individuals to design trusts, coordinate life insurance ownership, and align documents across wills, living trusts, powers of attorney, and health care directives. Our approach emphasizes practical drafting, clear instructions for trustees, and accessible communication so clients understand the steps involved and the expected outcomes for their families and beneficiaries.
We prioritize thorough planning and careful document preparation to reduce the likelihood of future disputes and to streamline trust administration. Our services include preparing trust instruments, facilitating transfers, advising trustees on premium funding and claims, and updating plans as family circumstances or laws change. The firm takes time to explain tax considerations, gifting strategies, and coordination with other estate vehicles, helping clients make informed decisions that align with their financial and family objectives.
Communication is central to our work: we provide clear explanations of trustee duties, reporting requirements, and distribution options so trustees and beneficiaries know what to expect. We also assist with successor trustee planning and recordkeeping protocols to support efficient administration when the trust becomes active. Our goal is to help clients implement an ILIT that functions reliably and protects their intentions for generations to come while minimizing administrative complexity for surviving family members.
Our process begins with a careful review of your financial profile, existing insurance policies, and estate documents to determine whether an ILIT aligns with your goals. We then draft trust documents tailored to your preferences, coordinate transfers or new policy issuances, and set up funding mechanisms for premium payments. After execution, we provide guidance for trustees, prepare any necessary notices, and keep documentation organized for future administration. Periodic reviews ensure the ILIT continues to reflect changes in law and family circumstances.
During the first phase we gather information about your existing estate plan, insurance policies, and family objectives. This includes examining revocable living trusts, wills, powers of attorney, and beneficiary designations to find any conflicts or coordination needs. We also discuss potential funding strategies for premiums and the timing of transfers to avoid unintended tax consequences. The initial consultation establishes clear goals and outlines the steps necessary to draft and fund an ILIT that aligns with your broader estate plan.
We review the ownership and beneficiary designations of existing life insurance policies to determine whether transferring a policy into a trust or issuing a new policy in the trust name is the best course. The review includes consideration of the three-year rule, gift tax implications, and coordination with revocable trusts or pour-over wills. Clear analysis of current documents reduces the risk of unintended estate inclusion and helps identify the most efficient funding and titling strategy for the ILIT.
We work with clients to define trustee powers, distribution conditions, successor trustee arrangements, and any restrictions or milestone provisions for beneficiaries. This conversation addresses practical concerns like who will manage premium payments, who can serve as successor trustee, and how distributions should be handled for different family members. Choosing the right scope of trustee authority and clear distribution standards helps prevent disputes and ensures the trust can be administered effectively over time.
After establishing objectives and terms, we prepare the trust document and related instruments needed to transfer ownership or establish policies within the trust. The drafting phase ensures that the trust’s language aligns with state law and clearly sets out trustee duties, distribution rules, and funding mechanisms. We coordinate signing, notarization, and delivery of documents, and assist with carrier forms when transferring or issuing policies. Careful drafting reduces ambiguity and sets the stage for orderly future administration by trustees and beneficiaries.
We handle the necessary coordination with insurance companies to document ownership changes or to arrange new policy issuances in the trust name. This includes ensuring beneficiary designations are consistent with the trust, confirming carrier requirements for transfers, and establishing premium payment methods. Documentation of these steps is important for administrative clarity and to support the intended tax treatment of policy proceeds. Our role is to simplify this process and ensure all paperwork reflects the trust’s structure.
Execution involves signing the trust, funding instruments, and any ancillary documents such as assignment forms or certification of trust. We guide clients through proper execution formalities and ensure that gifts or transfers used to fund premiums are documented in line with tax rules. Completing these steps carefully helps prevent future disputes and establishes a clear record that the trust was properly funded and that ownership was transferred according to the grantor’s plan.
Following execution, we provide guidance to trustees and beneficiaries on administration, recordkeeping, and tax reporting. Trustees receive instructions about premium payments, beneficiary communications, and claims procedures. We also recommend periodic reviews to address changes in family circumstances, asset values, and law that could affect the trust. Regular updates ensure the ILIT continues to achieve the grantor’s objectives and that trustees are prepared to manage the trust effectively when benefits become payable.
We advise trustees on maintaining accurate records of premium payments, contributions, policy correspondence, and distributions. Proper recordkeeping supports transparent administration and is useful for tax and accounting purposes. Trustees should also be familiar with the steps to file trust tax returns when necessary and with the procedures for filing insurance claims. Providing trustees with clear checklists and documentation templates helps reduce delays and ensures beneficiaries receive benefits according to the trust terms.
Although an ILIT is irrevocable, accompanying estate planning documents such as revocable trusts and wills may require updates over time. We recommend periodic reviews of the overall estate plan, beneficiary designations, and funding arrangements to reflect life events like births, deaths, marriages, or changes in financial circumstances. These reviews help maintain alignment across documents and ensure that the ILIT and related instruments continue to serve the grantor’s intentions as family and financial situations evolve.
An Irrevocable Life Insurance Trust (ILIT) is a trust specifically designed to own life insurance policies and receive policy proceeds for the benefit of named beneficiaries. The trust becomes the legal owner and beneficiary of the policy, and the trustee manages premium payments, policy maintenance, and distributions according to the trust’s terms. An ILIT can help remove life insurance proceeds from a taxable estate when properly implemented, provide probate avoidance for those funds, and create a structured plan for how death benefits will be distributed to heirs over time. Deciding whether an ILIT is appropriate depends on your overall estate size, family needs, and tax planning goals. Individuals with significant assets, business interests, or concerns about protecting proceeds from probate or creditor claims often consider an ILIT as part of a broader plan. The process typically involves coordination with insurance carriers, clear funding strategies for premiums, and careful drafting to achieve the intended legal and tax outcomes while maintaining clear administration procedures for trustees and beneficiaries.
When a life insurance policy is owned by an ILIT rather than the insured individual, the death proceeds are generally not included in the insured’s probate estate, which can reduce estate tax exposure if other conditions are met. However, timing rules and the nature of the transfer matter. For instance, if an existing policy is transferred into an ILIT and the insured dies within three years of the transfer, the proceeds may be includable in the estate according to applicable rules. Effective estate tax planning requires attention to transfer timing, funding mechanisms, and the interaction of the ILIT with other estate planning documents. In some cases, issuing a new policy in the trust’s name or delaying certain transfers can achieve the desired treatment. Clients should weigh potential tax savings against administrative requirements and coordinate funding strategies to support premium payments without creating unintended tax consequences.
The trustee manages the trust’s assets according to the terms of the ILIT and applicable law, which typically includes paying premiums, maintaining policy records, filing required tax forms, and communicating with beneficiaries. The trustee must follow distribution instructions, keep accurate accounting records, and make decisions consistent with the trust document. Successor trustee provisions ensure continuity if the primary trustee cannot serve, and clear powers help trustees act without court involvement where appropriate. Trustees also handle claims after the insured’s death and manage the distribution of proceeds to beneficiaries consistent with the trust terms. Careful selection of a trustee who understands administrative duties and recordkeeping helps prevent delays or disputes. Trustees may seek professional advice when handling complex tax or investment issues, and the trust document can authorize such reliance to facilitate effective administration.
Funding premiums to an ILIT can be structured to take advantage of annual gift tax exclusions when handled properly, such as using Crummey withdrawal notices to allow beneficiaries a temporary right to withdraw contributions and qualify for the annual exclusion. Alternatively, other gifting strategies may be considered based on the grantor’s tax situation. Proper documentation and timely notices are important to support tax treatment for premium gifts. Clients should be aware that large gifts or inconsistent funding approaches may have unintended tax consequences, and careful planning helps avoid this outcome. Coordinating premium funding with broader gifting strategies and consulting with advisors about gift tax implications ensures that premiums are paid in a way that supports the ILIT’s long-term viability and the grantor’s overall estate planning objectives.
The three-year rule provides that if the insured transfers an existing life insurance policy to a trust and dies within three years of the transfer, the death proceeds may be included in the insured’s estate for tax purposes. This rule can defeat the intended estate tax benefits of moving a policy into an ILIT too close to the time of death. Because of this, timing is a critical consideration when transferring ownership of an existing policy. To avoid the three-year inclusion, some clients choose to purchase new policies owned by the trust or to transfer existing policies well before the end of life. Each option has trade-offs related to underwriting, premiums, and administrability, so careful planning and coordination with insurance carriers and estate documents helps ensure the chosen strategy supports the desired tax outcome.
ILITs and revocable living trusts serve different but complementary roles. A revocable living trust allows the grantor to maintain control over assets during their life and provides a vehicle for probate avoidance and management of assets upon incapacity or death. An ILIT, by contrast, is specifically designed to own life insurance and manage proceeds according to fixed trust terms. Coordination between the two ensures beneficiary designations and distribution plans are consistent across documents. A pour-over will can direct assets into a revocable trust at death, and it may be used alongside an ILIT to handle other assets not titled in trust. Effective estate planning integrates these tools to prevent conflicting instructions, make administration more efficient, and secure the grantor’s intentions regarding both liquid insurance proceeds and more complex asset holdings.
An ILIT can offer an added layer of protection for policy proceeds by removing them from the grantor’s probate estate and by providing trust terms that limit direct distributions to beneficiaries who might face creditor claims or other financial risks. By placing proceeds under trustee control, access can be regulated according to trust provisions, reducing the likelihood that funds are immediately subject to creditors or division through marital claims. However, asset protection depends on timing, trust structure, and applicable law, so careful drafting is important. While an ILIT can help safeguard funds for beneficiaries, it is not a guarantee against all claims. For individuals concerned about creditor exposure or future family disputes, combining an ILIT with other planning measures and clear documentation can improve the likelihood that proceeds are preserved according to the grantor’s wishes and distributed when appropriate for beneficiaries’ needs.
If the grantor dies shortly after transferring a policy to an ILIT, the three-year rule may require inclusion of the policy proceeds in the grantor’s estate for tax purposes. This outcome can negate some intended estate tax benefits of the ILIT. To minimize this risk, clients often plan transfers well in advance or consider issuing a new policy directly in the trust’s name when timing is a concern. Understanding the timing and implications of transfers helps inform the decision to move an existing policy or to take alternative approaches. Consulting with counsel early in the planning process and documenting all steps taken to fund the ILIT supports clarity and strengthens the legal position should questions about timing or intent arise after the grantor’s death.
Distributions from an ILIT can be structured in many ways to reflect the grantor’s goals. Common approaches include outright lump-sum distributions to beneficiaries, staged distributions tied to age milestones, discretionary distributions for education or health care, or a combination that balances immediate needs with long-term preservation. The trust document should clearly state the standards and timing for distribution to guide trustees and reduce disputes among heirs. Trust terms may also authorize trustees to invest proceeds and distribute income or principal based on beneficiary needs. For beneficiaries with specific circumstances, such as disabilities or vulnerability to creditor claims, the trust can include protective provisions to ensure long-term support. Clear drafting and trustee guidance are essential so distributions align with the grantor’s intentions and support the beneficiaries’ best interests over time.
To begin establishing an ILIT with our firm, contact the Law Offices of Robert P. Bergman for an initial consultation where we will review your current estate documents, life insurance policies, and financial objectives. During that meeting we discuss whether an ILIT aligns with your goals, explain funding options, and outline a clear implementation plan including drafting, execution, and funding steps. We will identify necessary coordination with insurance carriers and potential tax implications to guide your decisions. Following the consultation we prepare the trust document and coordinate policy ownership transfers or new policy issuances, assist with execution formalities, and provide guidance for trustees. We also recommend a schedule for periodic review to ensure the ILIT remains aligned with family changes and legal developments. Our approach aims to make the process clear, efficient, and tailored to your particular family and financial circumstances.
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