An irrevocable life insurance trust (ILIT) can be a powerful estate planning tool for people in Orangevale who want to control how life insurance proceeds are handled after their passing. At the Law Offices of Robert P. Bergman we help clients understand whether an ILIT aligns with their goals, including reducing potential tax exposure and protecting proceeds for beneficiaries. This guide explains how an ILIT works, common reasons people choose this trust, and the documents and steps typically involved. We focus on delivering clear, practical guidance so you can decide confidently about this option.
Choosing to create an ILIT involves legal, tax, and administrative considerations that vary with your family situation and financial objectives. Whether you own substantial life insurance policies, want to ensure proceeds pass outside of probate, or seek to provide long-term management for beneficiaries, an ILIT can be structured to meet those aims. This page covers how an ILIT differs from other trusts, what trustees and beneficiaries should expect, and how the Law Offices of Robert P. Bergman assist clients across Sacramento County including Orangevale in implementing an effective plan tailored to California rules and local needs.
An ILIT matters because it provides a way to manage life insurance proceeds in a controlled manner that may reduce complications and preserve value for intended beneficiaries. By placing ownership of a policy inside a trust, proceeds can be directed, shielded from probate, and potentially kept separate from a taxable estate. This can help families who want ongoing financial support for children, a surviving spouse, or dependents with special needs. The trust structure also creates specific instructions for trustees about how and when funds are distributed, helping to avoid disputes and ensure the decedent’s wishes are honored over time.
The Law Offices of Robert P. Bergman serves clients throughout Sacramento County and beyond with practical, client-focused estate planning services. We emphasize clear communication and a thorough review of each client’s assets, family circumstances, and long-term goals. Our approach begins with a careful needs assessment and continues through drafting trust documents, coordinating funding of policies, and advising trustees on administration duties. Clients appreciate our attention to detail and responsiveness as we guide them through the decisions required to put an ILIT in place that aligns with California law and personal preferences.
An ILIT is a trust that owns a life insurance policy and sets the rules for how the policy’s proceeds will be used when the insured dies. The trust is irrevocable, meaning the grantor typically cannot change its terms or reclaim the policy once the trust is funded, which is why careful planning is essential. Ownership by the trust rather than by an individual can help keep proceeds out of the taxable estate and outside probate administration. Setting up an ILIT also involves naming trustees and beneficiaries and clarifying the timeline and conditions for distributions.
Funding an ILIT usually requires transferring an existing policy into the trust or having the trust purchase a new policy. If a transfer occurs shortly before death, different tax rules may apply, so timing and coordination are important. The trustee is responsible for holding the policy, receiving proceeds, and carrying out distribution instructions according to the trust document. That role includes record-keeping, tax filings if necessary, and working with beneficiaries to ensure the funds are used in ways the grantor intended while following California legal requirements and trust terms.
An irrevocable life insurance trust is a legal arrangement that places ownership of a life insurance policy into a trust. The trustee manages the policy on behalf of the beneficiaries according to the grantor’s written instructions. Because the trust is irrevocable, the grantor gives up direct control over the policy and its proceeds, which can create tax and estate planning benefits. The trust document outlines distribution rules, grants the trustee authority to make decisions about policy premiums and payouts, and may include provisions for reinvestment, loans, or specific spending purposes for beneficiaries.
Important elements of an ILIT include the trust document itself, the trustee appointment, named beneficiaries, and instructions for funding and distribution. The process commonly begins with a consultation to determine goals and select trustees who are willing to manage the trust. Drafting the trust language follows, with attention to timing rules that affect tax treatment. Funding the trust may involve transferring an existing policy or purchasing a new one owned by the trust. Ongoing administration includes premium payments, recordkeeping, and managing distributions when proceeds are paid to the trust.
Understanding the terminology used in ILIT planning helps clients make informed decisions. Terms like grantor, trustee, beneficiary, funding, assignment, and exclusion period appear frequently in documents and discussions. Becoming familiar with these concepts reduces uncertainty, allows clearer conversations about timing and tax implications, and ensures that trustees and beneficiaries know their responsibilities. This glossary section defines common words and phrases, providing a quick reference for clients preparing to set up or administer an irrevocable life insurance trust in California.
The grantor is the person who establishes the trust and transfers assets into it. In the context of an ILIT, the grantor typically arranges for a life insurance policy to be owned by the trust and defines the rules for how proceeds should be used. Because an ILIT is irrevocable, the grantor generally gives up the right to change the trust terms or reclaim the policy once it is funded. Choosing the grantor’s intentions carefully and documenting them clearly is essential, as the grantor’s decisions shape the trust’s administration and the beneficiaries’ future financial support.
The trustee is charged with managing the trust assets and following the instructions in the trust document. For an ILIT this includes maintaining the life insurance policy, ensuring premiums are paid, keeping accurate records, and distributing proceeds in accordance with the grantor’s directions. Trustees may also have duties such as filing necessary tax returns, investing trust funds prudently, and communicating with beneficiaries about the trust’s status. Selecting a trustee who understands the administrative demands and is willing to accept fiduciary duties is a vital step in the process.
Funding an ILIT means transferring the ownership of a life insurance policy to the trust or having the trust purchase a new policy. A key consideration is timing: if a policy is transferred within three years of the insured’s death, special rules may include the proceeds in the taxable estate. Proper funding also involves ensuring premium payments can be made on an ongoing basis, often by making annual gifts to the trust that the trustee uses to pay premiums. Clear documentation of transfers and gifts helps protect the desired estate planning outcomes.
Beneficiaries are the individuals or entities entitled to receive trust benefits when proceeds are distributed. The trust document details how and when those distributions occur, such as lump-sum payments, scheduled disbursements, or distributions tied to milestones like education or home purchase. Precise beneficiary designations in the trust help avoid conflicts and ensure funds are used for the grantor’s intended purposes. Trustees must follow these directions carefully and balance the needs of multiple beneficiaries while adhering to the trust’s legal and administrative requirements.
Deciding whether an ILIT is right for you involves comparing it with alternatives like owning a policy outright, naming beneficiaries directly, or using other trust types. Owning a policy personally gives direct control but may expose proceeds to probate or estate taxation. An ILIT offers more structure and can remove proceeds from the estate if properly timed, but it requires relinquishing control and committing to trust administration. For some clients a pour-over will combined with a living trust may address needs; for others, the specific protections offered by an ILIT are a better fit due to family dynamics, tax considerations, or asset-protection goals.
When a person’s primary objective is simply to pass insurance proceeds quickly to a spouse or adult children without additional management needs, maintaining straightforward beneficiary designations may be enough. This approach requires fewer documents and less ongoing administration, but it offers limited control over how proceeds are used and may not protect against creditors or reduce estate inclusion. For individuals with uncomplicated family structures and no significant tax or asset protection concerns, this limited option can be efficient and cost effective while still accomplishing basic transfer objectives.
If projected estate value is well below thresholds for federal and state estate tax concerns, some clients choose not to create an ILIT and instead rely on direct ownership or beneficiary designations. In these situations the administrative burden of an ILIT may outweigh potential tax benefits. Clients who do not anticipate complex creditor issues, blended family disputes, or special needs beneficiaries often find a simpler plan best serves their goals. Nevertheless, periodic review remains important because changes in assets, family circumstances, or tax laws can alter what approach is most appropriate.
A comprehensive ILIT plan is often chosen by those who want life insurance proceeds to avoid probate and possibly be excluded from the taxable estate when properly structured. This protects the funds from probate delays and public court processes, offering privacy and potentially faster access for beneficiaries. Additionally, careful drafting and funding of an ILIT can help manage estate tax exposure if the estate is sizable. For families with substantial life insurance assets or complex distribution goals, the additional planning and administration provide a clearer path to realizing those objectives.
When beneficiaries are minors, have ongoing care needs, or may struggle with managing a large sum, an ILIT allows the grantor to set conditions and timelines that protect those beneficiaries’ long-term welfare. The trustee can be instructed to disburse funds for education, health care, or support over time instead of a single lump sum that could be mismanaged. This structured approach gives families confidence that life insurance proceeds will be used in the ways intended and preserved for future needs, while keeping directions private and legally enforceable within California law.
A comprehensive ILIT strategy offers control, protection, and clarity. By placing a policy in an irrevocable trust and spelling out distribution rules, grantors reduce the likelihood of disputes among beneficiaries and can protect proceeds from probate administration. The trust structure also supports more predictable outcomes for managing funds over time, whether for a surviving spouse, children, or other loved ones. Working through the details upfront allows trustees to act quickly and consistently with the grantor’s wishes, minimizing stress for families at a difficult time.
Comprehensive planning can also address tax considerations, coordinate with existing estate documents such as pour-over wills or living trusts, and provide solutions for unique family situations, including second marriages or dependents with special needs. Tailored trust provisions allow grantors to set limits, establish staggered distributions, or create uses tied to education and health care. When trustees understand their responsibilities and funding is properly handled, an ILIT can deliver long-term financial support that aligns with the grantor’s objectives and adapts to changing beneficiary circumstances.
An ILIT helps keep the disposition of life insurance proceeds private by avoiding probate court proceedings for those funds. Probate can be time consuming, public, and sometimes costly; placing ownership in a trust provides a non-public mechanism for transferring wealth to beneficiaries. For families that value discretion or wish to avoid the delays associated with probate, this benefit can be a primary reason to pursue an ILIT. Trustees administer the trust according to its terms, delivering proceeds outside the probate process and helping beneficiaries receive support more efficiently.
A properly drafted ILIT gives the grantor the ability to set detailed rules for how proceeds are used, allowing distributions to be tailored to specific needs such as educational expenses, medical care, or staged payments over time. This flexibility helps protect beneficiaries from making impulsive financial decisions and ensures funds are available for long-term objectives. Trustees carry out these instructions, balancing immediate needs with preservation of capital. The trust can also include language to address unforeseen circumstances, providing continuity and certainty for families.
Begin the ILIT planning process well before a potential need arises to avoid timing problems that can complicate tax treatment. Transferring a policy into an ILIT too close to the insured’s death can trigger inclusion rules that defeat intended estate tax benefits, so early coordination of ownership, premium funding, and beneficiary designations is important. Early planning also gives you time to select a trustee who understands fiduciary duties, set clear distribution instructions, and ensure premium funding is reliable. Taking these steps ahead of time reduces risk and increases the likelihood that the ILIT will produce the intended results.
Keep careful records of any transfers of policy ownership and of gifts made to the trust for premium payments. Proper documentation helps demonstrate that funding and transfers were completed in a timely and compliant manner, which can be important for tax and estate planning objectives. Annual gift transfers used to pay premiums should be documented and handled in accordance with gifting rules, and trustees should maintain detailed records of payments, communications with insurers, and any investment decisions. Organized documentation reduces disputes and supports the trustee in administering the trust effectively.
People consider an ILIT when they want to ensure life insurance proceeds are managed outside of probate, protected from creditors in certain circumstances, or distributed in specific ways to beneficiaries. An ILIT can be especially helpful for blended families who want to direct funds to particular heirs, for those who anticipate estate tax issues, or for individuals who want to provide ongoing financial support to dependents who may not be ready to manage a large inheritance. The trust structure gives precise control over timing and conditions for distributions, creating lasting protections for intended recipients.
Other common reasons to consider an ILIT include protecting assets for a surviving spouse while reserving ultimate benefits for children, providing for a dependent with disabilities without jeopardizing public benefits, or ensuring funds are used for education or care rather than squandered. Because an ILIT is irrevocable, it is important to weigh the trade-offs of giving up direct control in exchange for these protections. Consulting with a knowledgeable attorney can clarify whether these benefits align with your objectives and how best to implement an ILIT within your overall estate plan.
An ILIT is often a fitting choice for homeowners with sizable life insurance coverage, individuals in second-marriage situations seeking to preserve assets for children, business owners planning for continuity, and families with members who have ongoing care needs. It can also be appropriate for those focused on minimizing probate involvement or coordinating life insurance proceeds with other estate planning instruments. Each of these circumstances involves considerations about taxation, control, and long-term management that an ILIT can address through clear trust terms and deliberate funding strategies.
Blended families often require tailored strategies to ensure that a surviving spouse has adequate support while preserving assets for children from a prior relationship. An ILIT allows a grantor to designate specific distribution rules that balance these competing goals. By placing a life insurance policy in a trust, assets can be directed to intended heirs according to the grantor’s explicit instructions, reducing the risk of unintended disinheritance or disputes. Proper drafting can provide liquidity for immediate needs while protecting the long-term interests of multiple beneficiaries.
An ILIT can be structured to support beneficiaries who rely on public benefits or who have disabilities by setting distribution terms that preserve eligibility while providing supplemental support. Trust terms can specify uses for medical and educational needs, caregiver payments, or discretionary allowances that do not interfere with public assistance. This careful planning helps ensure that beneficiaries receive meaningful benefits from life insurance proceeds without losing important safety net programs, offering both financial support and peace of mind to families managing complex care needs.
Individuals with significant life insurance holdings or large estates may use an ILIT as part of a broader wealth transfer strategy to manage potential estate tax exposure and provide liquidity to satisfy obligations. When properly funded and timed, proceeds held in an ILIT can offer estate planning advantages by removing policy value from the grantor’s taxable estate. The trust also supplies a mechanism for orderly distribution to heirs and can work in concert with retirement plan trusts, pour-over wills, and other estate planning documents to implement a cohesive plan for asset transition.
The Law Offices of Robert P. Bergman assists clients across Orangevale and Sacramento County with estate planning matters including ILIT formation, trust funding, and trustee guidance. We work to understand each client’s family dynamics and financial goals, offering practical recommendations and drafting documents that reflect those aims. Our team supports clients through the entire process, from initial planning to transferring policies and advising trustees on administration duties. Local knowledge of California rules and Sacramento County practices helps us provide planning that meets community needs.
Clients select our firm for ILIT planning because we provide clear, actionable estate planning guidance grounded in real-world experience with California law. We prioritize practical solutions that match each client’s unique circumstances, whether that means coordinating with existing trusts and wills or helping fund a new ILIT. Our approach includes personalized attention, careful drafting, and ongoing support for trustees and beneficiaries. We aim to reduce uncertainty for families by documenting intentions precisely and ensuring necessary steps are taken to preserve the desired outcomes.
Our process emphasizes communication and thoroughness at every stage. We review current insurance arrangements, help identify appropriate trustees, outline funding strategies, and create trust language that anticipates likely future needs. Because each family’s situation is different, we tailor provisions for distributions, creditor protection, and coordination with other estate documents. We work closely with financial advisors and accountants when helpful to provide a coordinated plan that reflects both legal and financial considerations specific to Orangevale and California.
We also provide support after the trust is established, offering trustee guidance on administrative tasks and ensuring documentation is maintained properly. From confirming premium payment mechanisms to advising on distributions when proceeds are received, our goal is to reduce administrative burdens and help trustees execute the grantor’s wishes effectively. Client satisfaction comes from our clear explanations, practical problem solving, and consistent follow-through throughout the life of the trust and in transitions after the insured’s death.
Our process for creating and administering an ILIT begins with a comprehensive consultation to assess assets, family needs, and objectives. After identifying goals we recommend suitable trustees, draft the trust document tailored to those aims, and coordinate transfer or purchase of the life insurance policy in the trust’s name. We also advise on funding strategies for premium payments and document the necessary gift transfers. After formation we remain available to assist trustees with administration tasks, record keeping, and post-death distributions to ensure the trust operates as intended.
The first step focuses on gathering information about existing insurance policies, financial accounts, family relationships, and long-term goals. We discuss whether transferring an existing policy into a trust or having the trust purchase a new policy is more appropriate, considering timing and tax implications. This stage also includes selecting potential trustees and beneficiaries, discussing distribution preferences, and outlining funding mechanisms for premiums. Clear documentation of decisions made during this phase sets the foundation for effective drafting and minimizes surprises later in the process.
We ask clients to provide copies of current life insurance policies, estate planning documents such as wills or living trusts, financial statements, and a list of intended beneficiaries. This information lets us analyze current ownership and beneficiary designations, identify potential conflicts, and determine the best method for funding an ILIT. Gathering this documentation also allows us to spot issues like recent transfers that could affect tax treatment and to propose adjustments that align with the client’s objectives while complying with California legal requirements.
During planning meetings we explore the client’s goals for distributions, privacy, and tax considerations, and we discuss who should serve as trustee and successor trustees. Trustee selection balances trustworthiness, availability, administrative capacity, and potential cost. We also consider whether to involve a corporate trustee in combination with individual trustees for administrative support. Discussing these matters upfront ensures the trust reflects realistic administration expectations and that appointed trustees understand their intended role before document execution.
Once planning is finalized we draft the ILIT document with clear distribution instructions, trustee powers, and contingencies for unforeseen circumstances. The drafting process incorporates timing language to address transfer and tax rules and includes provisions for premium funding and trust recordkeeping. After clients review and approve the draft, we coordinate signing and notarization and work with insurers or financial institutions to change policy ownership if needed. Accurate execution and documentation at this stage are essential to preserve the intended benefits of the trust.
The trust document is drafted to reflect the client’s specific distribution preferences, naming of trustees and successors, and instructions for premium funding. Drafting may also include clauses for discretionary distributions, spendthrift protections, and successor trustee powers to ensure continuity. We take care to use language that aligns with California law and the client’s estate plan, avoiding ambiguous phrasing that could lead to disputes. Clear, precise terms make trust administration more straightforward for trustees and reduce the risk of interpretation conflicts later.
After execution we handle the practical steps of funding the trust, whether through assignment of an existing policy or arranging for the trust to purchase a new policy. This involves contacting insurers, completing change-of-owner forms, and documenting gift transfers when necessary to pay premiums. We ensure that transfers are timed appropriately to avoid unintended tax inclusion and that records of each step are maintained. Clear coordination at this phase helps solidify the intended estate planning benefits and provides trustees with the documentation they will need for future administration.
After the ILIT is funded and in effect, trustees must manage premium payments, maintain records, and be prepared to claim proceeds when the insured dies. Our firm offers guidance on trustees’ administrative duties, including how to handle distributions according to the trust and how to coordinate with beneficiaries, accountants, or financial advisors. When the insured passes, we assist with filing claims, obtaining proceeds, and carrying out distribution instructions while ensuring documentation is preserved for tax and legal purposes to support compliance with California regulations.
Trustees should keep comprehensive records of premium payments, gifts, communications with insurers, and any investments or distributions made by the trust. Proper recordkeeping aids in administering the trust transparently and supports any necessary tax filings. Our firm advises trustees on best practices for documentation and, when needed, coordinates with accountants to prepare required returns. Meticulous records also help address beneficiary inquiries and preserve the integrity of the trust over time, facilitating smooth transitions and faithful carrying out of the grantor’s instructions.
When life insurance proceeds are paid to the ILIT, the trustee must follow the trust’s distribution instructions while complying with any tax or legal requirements. We assist trustees in filing claims with insurers, reviewing proceeds, and executing distributions in accord with the trust. This may include making lump-sum payments, scheduled disbursements, or payments for specific expenses such as education or health care. Guidance at this stage helps ensure that distributions are managed transparently and in line with the grantor’s expressed intentions.
An irrevocable life insurance trust is a trust that owns a life insurance policy and sets out the rules for how proceeds will be managed and distributed to beneficiaries when the insured dies. Because the trust is irrevocable, the person who creates it typically transfers ownership of the policy into the trust and gives up direct control over the policy and its proceeds. The trustee manages the policy, ensures premiums are paid, and distributes proceeds according to the trust terms. This structure can help preserve privacy, provide orderly distributions, and potentially remove proceeds from the taxable estate if funding and timing are handled correctly. The trust document should name a trustee and successor trustees, identify beneficiaries, and describe when and how funds should be distributed. Funding the trust may involve transferring an existing policy or having the trust purchase a new one; timing is important because transfers close to the date of death can affect estate inclusion. Trustees also handle recordkeeping and may coordinate with financial advisors and accountants. Careful drafting determines how the trust operates and how it meets the grantor’s objectives under California law.
Transferring a policy into an ILIT can help exclude the policy’s proceeds from the grantor’s taxable estate when properly executed and timed. However, if a policy is transferred within a certain time period before the insured’s death, special rules may cause the proceeds to be included in the estate. This makes early planning and precise documentation important to preserve intended tax benefits. The specifics depend on the timing of transfers and the nature of the insurance ownership, so it is essential to plan transfers with these rules in mind to reduce the chance of unintended consequences. Additionally, funding methods matter: making systematic gifts to the trust to cover premiums must be documented and handled in accordance with gifting rules. Working proactively ensures premium funding is reliable and that any potential tax concerns are addressed. Coordination with accountants and careful attention to California and federal rules helps clients implement an ILIT that supports estate planning goals without creating unintended tax exposure.
A trustee should be someone trustworthy, organized, and willing to carry out the duties required by the trust document. Trustees must manage premium payments, keep accurate records, file any needed tax returns, communicate with beneficiaries, and make distributions according to the trust’s terms. Because these responsibilities can be time consuming, some grantors name a family member or close friend as trustee and name a professional or institutional successor trustee to provide continuity if needed. When selecting a trustee consider availability, administrative capacity, and willingness to act in a fiduciary role. For some clients it makes sense to appoint a combination of individual and institutional trustees to blend personal knowledge of the family with administrative support. Discussing the role with potential trustees beforehand helps ensure they understand the responsibilities and are prepared to serve if called upon.
After an ILIT is created, premium payments are usually made by making annual gifts to the trust that the trustee then uses to pay the insurer. The grantor may provide funds directly to the trustee each year or create a funding plan to ensure payments continue. Proper documentation of each gift is important to show the source and purpose of the funds and to avoid confusion about whether the trust or the grantor owns or controls the policy. In some situations the trust may purchase a policy and hold cash or other assets to use for premium payments. It is essential to plan for reliable premium funding to avoid policy lapse. Trustees should keep careful records of gifts, payments, and communications with the insurer to maintain transparency and compliance with the trust’s terms and any tax rules that may apply.
An ILIT can be designed to provide for a dependent with special needs without jeopardizing eligibility for public benefits, when structured and coordinated carefully with other planning tools. The trust’s distribution provisions can be drafted to provide supplemental support for medical, educational, or quality-of-life expenses while preserving needs-based benefits. It is important to use language that avoids direct interference with public assistance rules and where appropriate to coordinate with a special needs trust or other protective arrangements. Because these situations require careful balancing of benefits and distributions, planning typically involves consultation with legal and financial professionals who understand how to avoid adverse impacts on public benefits eligibility. Thoughtful drafting and coordination with benefit planners helps ensure the trust provides meaningful support while preserving access to essential services.
Because an ILIT is irrevocable, changing the trust after it is created is often limited and can be difficult. Grantors should carefully consider the terms before transferring a policy or funding the trust since the ability to alter provisions is typically constrained. In some cases, limited modifications can occur through mechanisms included in the trust or by using court processes to address unanticipated issues, but such options may be complex and are not always available. Given the limited flexibility after creation, thorough planning and clear documentation of intentions are key. Discussing potential future scenarios in advance and including contingency provisions in the trust can provide some adaptability. Periodic review of your broader estate plan with legal counsel ensures that the ILIT continues to align with changing family circumstances and financial goals.
The timeline to set up an ILIT varies based on complexity, existing policy transfers, and client availability, but many trusts can be drafted and executed within a few weeks once documents are finalized. If funding requires transferring an existing policy, insurers’ processing times and any steps needed to document gifts for premium payments can extend the timeline. For new policies, underwriting and issuance can take additional weeks depending on the insurer and the applicant’s health evaluation. To avoid timing issues related to tax treatment, it is advisable to start the process well in advance of any anticipated need. Early planning allows for careful coordination of policy transfers, gift documentation, and trustee onboarding. Planning in a deliberate manner reduces rush decisions and increases the likelihood that the ILIT will achieve the intended estate planning results.
An ILIT can help avoid probate for life insurance proceeds when the policy is owned by the trust and the trustee handles distributions according to the trust terms. Because the trust owns the policy, proceeds paid to the ILIT generally bypass probate administration, enabling a quicker and more private transfer to beneficiaries. This benefit is one reason many clients choose an ILIT when they prioritize privacy and want to reduce the involvement of the probate court in settling their affairs. It is important to ensure the policy is properly transferred to the trust and that the trust is funded in a timely manner to preserve probate avoidance benefits. Trustees must also follow the trust’s distribution instructions and maintain appropriate records. Properly executed, an ILIT provides a path to transfer life insurance proceeds outside the public probate process to meet the grantor’s privacy and efficiency goals.
An ILIT should be coordinated with your will, living trust, and other estate planning documents to ensure consistent treatment of assets and beneficiaries across your overall plan. A pour-over will is often used to capture any assets not already placed in trust, while a living trust can address other assets and provide centralized management. Coordinating documents ensures beneficiary designations do not conflict with trust provisions and that each instrument supports the same overall objectives. Regular reviews of your estate plan help keep all documents aligned as life circumstances change. When making changes to wills, living trusts, or beneficiary designations, it is important to consider the impact on the ILIT and vice versa. Working with a planner who understands the interplay among these documents helps avoid inconsistencies and preserves the intended distribution and administration strategy.
Costs for establishing and maintaining an ILIT vary depending on complexity, whether a new policy must be purchased, and the administrative needs of the trust. Initial legal drafting and consultation have one-time fees, and ongoing administration such as trustee services, recordkeeping, and tax filings can involve additional expenses. Choosing an individual trustee can reduce ongoing fees, while engaging a professional or corporate trustee increases administrative reliability but may increase costs. When considering costs, weigh them against the potential benefits of probate avoidance, controlled distributions, and any estate planning advantages. A carefully planned ILIT can provide meaningful value by ensuring proceeds are managed as intended. We provide clear fee estimates during the planning phase so clients understand both one-time and ongoing costs and can make informed decisions that balance expense and the anticipated 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