An irrevocable life insurance trust (ILIT) can be a powerful component of an estate plan for residents of National City and San Diego County. This page explains how an ILIT works, why someone might choose this trust to protect life insurance proceeds, and how the Law Offices of Robert P. Bergman can assist in creating a plan tailored to your circumstances. We will describe common documents used alongside an ILIT, steps in the process, and practical considerations for beneficiaries and trustees to help you make an informed decision for your family’s long-term financial protection.
Deciding to establish an ILIT involves evaluating your overall estate plan, the type of life insurance policy you own, and your goals for tax treatment and asset protection. This guide addresses how ILITs can remove life insurance proceeds from a taxable estate, provide controlled distributions to beneficiaries, and preserve wealth across generations. We also outline coordination with related documents like wills, powers of attorney, and trust funding. If you are considering an ILIT in National City, this overview will help you understand the process and identify the questions to ask when discussing options with the Law Offices of Robert P. Bergman.
An ILIT matters because it can change how life insurance proceeds are treated when calculating estate taxes, and it can improve control over how proceeds are distributed to beneficiaries. For families with significant life insurance policies, an ILIT can remove death benefits from the settlor’s taxable estate, potentially reducing estate tax exposure. It also allows the grantor to specify timing and conditions for distributions, appoint a trustee to manage assets, and protect benefits from creditors or spendthrift concerns. For those with dependent beneficiaries, an ILIT can be drafted to provide ongoing financial support while preserving inheritance for future generations.
The Law Offices of Robert P. Bergman serves clients across California, with an emphasis on practical, client-focused estate planning. Our team helps clients in National City and San Diego County evaluate whether an ILIT fits into their plan and prepares related documents such as revocable living trusts, wills, powers of attorney, and healthcare directives. We prioritize clear communication, thoughtful planning, and careful drafting to reflect client objectives and the unique needs of each family. From initial consultation to trust funding and ongoing administration, our approach emphasizes thorough documentation to help avoid future complications.
An ILIT is a trust created to own a life insurance policy and receive the policy’s death benefit free from inclusion in the grantor’s estate for estate tax purposes when structured properly. Establishing an ILIT typically requires transferring an existing policy into the trust or having the trust purchase a new policy. After the transfer or purchase, the trust becomes the owner and beneficiary of the policy, and administered distributions can be governed by the trust terms. Proper timing, formalities, and funding are necessary to achieve the intended tax and control results, so careful planning and documentation are important to avoid unintended consequences.
Key considerations include the three-year lookback rule for transfers of recently acquired policies, the way premiums are funded by the grantor through gifts to the trust, and the interplay between the ILIT and the rest of the estate plan. Trustees have fiduciary duties to manage policy premiums and claim proceeds consistent with trust terms. Beneficiary designations, coordination with retirement or other accounts, and potential creditor or Medicaid planning implications should also be considered. This section outlines the legal mechanics and practical steps involved in creating and maintaining an ILIT in California.
An irrevocable life insurance trust is a formal legal arrangement by which a grantor transfers ownership of a life insurance policy to a trust that cannot be revoked or changed by the grantor once established. The trust then holds the policy and receives the death benefit on the insured’s passing. Because the trust is separate from the grantor’s estate, properly structured ILITs can help keep life insurance proceeds from being counted in the grantor’s estate for tax purposes. The trust document specifies who will receive benefits, how and when distributions will be made, and who will serve as trustee to administer the trust in accordance with the grantor’s wishes.
Core elements of an ILIT include the trust instrument, trustee appointment, beneficiary designations, premium funding arrangements, and coordination with existing estate planning documents. The typical process involves drafting the trust terms to reflect distribution goals, transferring or issuing the life insurance policy to the trust, and establishing a method for funding ongoing premiums, often through annual gifts to the trust. Trustees should document premium payments, maintain records, and handle claims. Attention to timing, gift tax filings when applicable, and compliance with state law are essential to ensure that the ILIT functions as intended.
Understanding frequently used terms helps when evaluating an ILIT. This glossary explains common phrases such as grantor, trustee, beneficiary, premium funding, gift tax, three-year rule, and trustee powers. Clear definitions support better decision-making when selecting provisions for distributions, defining trustee authority, and deciding whether to transfer an existing policy or have the trust acquire a new one. Consulting with the Law Offices of Robert P. Bergman will help you apply these terms to your circumstances, particularly when coordinating an ILIT with a revocable living trust, will, powers of attorney, and health care directives.
The grantor is the person who creates the ILIT and typically transfers the ownership of a life insurance policy into the trust or causes the trust to acquire a new policy. The grantor usually provides funding for premiums through gifts to the trust and establishes the trust’s terms regarding who will receive the death benefit and under what conditions. Although the grantor may no longer retain the power to revoke the trust, careful drafting allows the grantor to control distribution objectives, such as providing for a surviving spouse, children, or other beneficiaries while keeping proceeds outside the grantor’s taxable estate.
The trustee is the individual or institution designated to manage the ILIT, including paying policy premiums, maintaining records, and distributing funds according to the trust terms after the insured’s death. Trustees have fiduciary responsibilities to act in the best interests of beneficiaries, follow the trust document, and document financial transactions. Choosing a trustee involves assessing reliability, administrative ability, and willingness to follow the grantor’s directions. The trust can name successor trustees to ensure continuity of administration over time.
Beneficiaries are the people or entities entitled to receive the trust’s assets, including life insurance proceeds, according to the ILIT’s distribution provisions. The trust document can set conditions, timing, and purposes for distributions, such as education, healthcare, or staged payouts over time. Naming beneficiaries within the trust rather than directly on the policy can provide greater control, protect assets from creditors or divorce proceedings in some cases, and help ensure that proceeds are used consistent with the grantor’s goals for family financial security and legacy planning.
The three-year rule refers to the provision that transfers of life insurance policies into an ILIT within three years of the insured’s death may still be included in the insured’s estate for estate tax purposes. This rule is designed to prevent last-minute transfers aimed at avoiding estate tax, and it means timing is important when transferring ownership of an existing policy. Grantors who plan to transfer a policy should consider this lookback period, and discuss alternatives such as having the trust purchase a new policy or structuring gifts and transfers well in advance of any anticipated need.
When comparing an ILIT to other estate planning tools, consider how each option handles control, tax treatment, liquidity, and probate avoidance. A revocable living trust provides flexibility and probate avoidance but keeps assets in the grantor’s estate for tax purposes, while an ILIT specifically targets life insurance proceeds to be outside the estate. Wills provide directives but may require probate. Powers of attorney and healthcare directives address decision-making during incapacity but do not address life insurance ownership. The best plan often involves combining tools so that an ILIT works alongside trusts, wills, and powers of attorney to meet family goals.
A limited approach to life insurance planning may be sufficient for families whose policies have modest death benefits and straightforward beneficiary arrangements. If the primary goal is to provide liquidity to pay final expenses and there are no significant estate tax concerns, maintaining current policy ownership with proper beneficiary designations and a coordinated will may achieve your objectives without creating an irrevocable trust. Simpler arrangements can reduce administrative demands and ongoing trust management responsibilities while still ensuring that immediate financial needs are covered for surviving family members.
In some situations, a limited or transitional planning strategy is appropriate, such as when a client anticipates changes in assets or estate size in the near future and prefers to defer creating a permanent trust structure. For instance, younger families who expect to accumulate more assets later may choose to revisit life insurance trust options as net worth grows. During this period, clear beneficiary designations, updated wills, and appropriate powers of attorney can provide protection and direction while preserving flexibility until a longer-term ILIT decision is made.
When life insurance benefits are substantial or when combined assets may create estate tax exposure, a comprehensive planning approach that includes an ILIT can be particularly helpful. Coordinating the ILIT with revocable trusts, wills, and other planning documents helps ensure consistent tax and distribution results. A comprehensive strategy considers funding ongoing premiums, documenting gifts for tax purposes, and establishing trustee roles to manage proceeds, while also addressing potential creditor and Medicaid planning concerns. Comprehensive planning minimizes the risk of conflicting documents and maximizes the likelihood that assets will be preserved for intended beneficiaries.
Families with blended relationships, minor beneficiaries, or beneficiaries with special financial needs frequently benefit from a comprehensive plan that integrates an ILIT with other trust provisions. A carefully drafted trust can set schedules for distributions, provide for guardianship of minor children, and include terms that protect vulnerable beneficiaries from losing benefits due to creditor claims or changes in circumstances. A full plan helps clarify the grantor’s intentions and reduces the likelihood of disputes among heirs while offering mechanisms to manage long-term financial support for those who need ongoing assistance.
A comprehensive approach to ILIT planning improves coordination across documents and reduces the chance of unintended tax or distribution consequences. When an ILIT is integrated with a revocable living trust, will, and powers of attorney, the legal team can align beneficiary designations, funding strategies, and trustee powers. This approach helps provide predictable outcomes for heirs, establishes clear administration procedures for trustees, and addresses scenarios such as incapacity or remarriage. It also helps ensure that premium funding methods and gift documentation are handled properly to support the trust’s intended tax treatment.
Beyond tax considerations, a comprehensive plan can enhance asset protection and maintain continuity of care for dependent beneficiaries, including provisions for guardianship nominations and special trust arrangements. By anticipating future events and setting transparent rules for distributions, families can preserve wealth and reduce the potential for conflicts. Working with the Law Offices of Robert P. Bergman helps ensure that drafting details, trustee selection, and ongoing administration are aligned with the client’s goals and the legal requirements in California, which can simplify trust administration after the insured’s passing.
One major benefit of a well-structured ILIT within a comprehensive estate plan is the potential to mitigate estate tax exposure while providing liquidity to pay taxes, debts, and final expenses. Because the trust owns the policy, proceeds may not be included in the grantor’s taxable estate, which can preserve more assets for beneficiaries. The trust can be tailored to make funds available at the times they are needed, and to appoint a trustee to ensure payments are made promptly and in line with the grantor’s intent, reducing administrative burdens on family members during a difficult time.
An ILIT offers control over distributions and can protect proceeds from creditors, divorce settlements, or poor financial decision-making by beneficiaries. Trust terms can provide for staggered distributions, incentivized distributions for education or home purchases, and protection for beneficiaries with financial or health needs. By naming a reliable trustee and setting clear rules, the grantor can preserve the intended use of the funds and reduce the likelihood that proceeds will be wasted or subject to external claims, helping to secure a family’s financial future across generations.
When funding ILIT premiums, create a clear plan for how annual premiums will be provided to the trust and ensure the trustee documents receipt and payment. Many clients use annual exclusion gifts to fund premiums and maintain accurate records to support tax filings if necessary. Proper documentation helps demonstrate that gifts were made to the trust and that the trustee used funds to satisfy premium obligations. Clear funding arrangements reduce the risk of disputes and help ensure timely premium payment so the policy remains in force for the benefit of intended beneficiaries.
Selecting the right trustee is an important decision because this person or institution will manage premium payments and trust distributions and carry out your wishes after the insured’s death. Discuss responsibilities with potential trustees and consider naming a successor trustee to ensure continuity. Provide trustees with clear instructions and maintain accessible records so they can fulfill administrative duties without delay. Preparing a trustee reduces friction at claim time and helps safeguard the trust’s assets for the benefit of your named beneficiaries.
Consider establishing an ILIT if you hold life insurance benefits that you want to preserve for heirs while reducing potential estate tax exposure. An ILIT can help keep death benefits out of your taxable estate, provide a structured distribution plan for beneficiaries, and ensure funds are available to pay taxes, debts, and final expenses. It may also protect proceeds from creditor claims in certain situations and offer continuity of financial support to family members who require longer-term assistance. Each family’s circumstances are different, so an ILIT should be evaluated alongside other planning tools.
You might also consider an ILIT if you wish to control how insurance proceeds are used, want to ensure funds are managed for minor or vulnerable beneficiaries, or need a way to provide liquidity without subjecting policy benefits to probate and estate settlement delays. An ILIT can work in tandem with guardianship nominations for minor children and specialized trusts, such as special needs trusts, to coordinate care and financial support. When designed carefully, an ILIT supports both immediate financial needs and long-term legacy and wealth preservation goals.
Typical circumstances that prompt consideration of an ILIT include ownership of large life insurance policies, blended families seeking to protect inheritances, concerns about estate tax exposure, and the desire to provide structured distributions for minor or financially vulnerable beneficiaries. People approaching retirement, owners of closely held businesses, and those with significant real estate holdings may also find ILIT planning beneficial. Additionally, clients who want to avoid probate for insurance proceeds and to ensure that funds are distributed according to specific conditions or timelines often turn to ILITs as a purposeful planning tool.
When life insurance policies have high face values relative to the grantor’s estate, an ILIT can be an effective means to help preserve wealth for heirs by removing the proceeds from taxable estate calculations. This approach can help families preserve liquidity to pay taxes and debts while keeping legacy assets intact. Properly structuring the trust and funding premium payments ensures that the policy remains in force and that proceeds are distributed under the terms the grantor intended, providing greater predictability and protection for beneficiaries.
Blended families often require careful planning to balance the needs of a surviving spouse and children from prior relationships. An ILIT allows a grantor to direct life insurance proceeds to designated beneficiaries while specifying conditions and timing for distributions. This enables the grantor to provide for a spouse’s financial needs during life while preserving assets for children or future generations. A trust can set clear rules to reduce potential conflicts and ensure that the grantor’s intent is followed across different family relationships.
When beneficiaries are minors or have special needs, an ILIT can create mechanisms for prudent management and distribution, protecting funds until beneficiaries reach defined ages or milestones. Trust provisions can provide for education, healthcare, and daily needs while limiting direct access to large sums that might be mismanaged. For beneficiaries with disabilities, coordination with special needs trusts and government benefit rules can help ensure continued eligibility for public assistance while providing supplemental financial support from life insurance proceeds held in the ILIT.
The Law Offices of Robert P. Bergman provides local assistance to clients in National City and the surrounding areas, helping to design and implement ILITs that align with each family’s goals. Our team can explain the process, prepare trust documents, coordinate transfers or trust purchases of policies, and advise on funding and trustee selection. We also work with clients to integrate ILITs into a broader estate plan that includes revocable living trusts, wills, powers of attorney, and healthcare directives, ensuring consistent and practical solutions for preserving family wealth and providing for beneficiaries.
Choosing a law firm for ILIT planning means selecting a team that focuses on careful documentation, clear communication, and planning that anticipates future events. At the Law Offices of Robert P. Bergman, we aim to provide practical guidance on whether an ILIT fits into your estate plan and how to coordinate it with other essential documents. We assist with drafting trust instruments, coordinating transfers or policy purchases, advising on premium funding strategies, and preparing any necessary gift tax filings to support your objectives for preserving wealth and protecting beneficiaries.
Clients benefit from our attention to administrative details that matter for trust effectiveness: drafting precise distribution instructions, documenting gifts and premium payments, selecting trustees, and ensuring consistent beneficiary designations. We also help clients assess timing considerations such as the three-year transfer rule and ways to structure policies and funding to achieve intended results. Our goal is to provide clients with understandable options and reliable implementation so their ILIT and broader estate plan operate smoothly when needed.
Beyond document preparation, we assist with trust administration steps such as trustee orientation, record keeping standards, and coordination with financial institutions and insurance carriers. For families with complex needs, we discuss options like special needs trusts, guardianship nominations, and other tailored provisions that can be incorporated into an overall plan. This practical, client-centered process helps ensure that the ILIT fulfills its role in protecting family interests and facilitating orderly distribution of insurance proceeds in accordance with the grantor’s wishes.
Our ILIT process begins with an initial consultation to review your life insurance policies, family situation, and estate planning goals. We evaluate whether transferring existing policies or having the trust acquire a new policy best suits your objectives, discuss premium funding strategies, and identify potential timing issues such as the three-year rule. Next, we draft the trust document, coordinate trust funding, and prepare any related documents such as a pour-over will or certification of trust. We also explain trustee duties and provide guidance on record keeping to support the long-term administration of the trust.
During the initial evaluation, we gather information about your insurance policies, assets, family relationships, and long-term goals. This assessment helps determine whether an ILIT aligns with your plan, whether an existing policy should be transferred into the trust, or whether the trust should purchase a new policy. We also review potential gift tax implications, the impact of the three-year lookback rule, and how the ILIT will work with other estate planning documents. A clear strategy at the outset reduces the risk of unintended tax or administrative problems later.
We review policy ownership, beneficiary designations, and the policy’s cash value, if any, to determine the most appropriate path forward. Transferring an existing policy into an ILIT requires careful review of surrender values and potential tax consequences, while having the trust acquire a new policy may avoid lookback complications. This analysis also considers premium affordability and whether annual gift funding is feasible. The goal is to select the ownership structure that best accomplishes your estate and family objectives with minimal unintended side effects.
Once an ownership approach is selected, we develop a funding plan to support premium payments and document gifts appropriately. Many clients use annual exclusion gifts to transfer funds to the ILIT, which the trustee then uses to pay policy premiums. Proper documentation and, where necessary, gift tax filings help establish the legitimacy of the transfers. We provide clients with instructions for maintaining records and advise trustees on how to acknowledge receipt and usage of funds to preserve the intended tax treatment and administration clarity.
After agreeing on a plan, we draft the ILIT document with terms tailored to your distribution preferences and administrative needs. The trust instrument will name trustees, beneficiaries, and specify how proceeds are to be used and distributed. If transferring an existing policy, we coordinate with the insurance carrier to effect the ownership change and update beneficiary designations so the trust is the owner and beneficiary. For new policies, we ensure the trust is properly named as owner at issuance to prevent future inclusion in the estate due to improper titling.
The trust document should clearly spell out trustee powers, distribution standards, and any limitations or conditions on payouts to beneficiaries. We draft provisions to address common needs such as education support, healthcare expenses, short-term liquidity, and long-term legacy planning. Including successor trustee provisions and record keeping requirements provides continuity. Clear trustee powers reduce administrative uncertainty and provide a framework for decisions while protecting beneficiaries and maintaining compliance with the trust terms over time.
Coordination with insurance carriers and financial institutions is an important administrative step to ensure the trust is properly recognized as owner and beneficiary and that premium payments are applied correctly. We communicate with carriers, complete required transfer forms, and verify changes to policy records. When premiums are paid using funds gifted to the trust, we ensure the trustee follows proper procedures to document receipt and payment. This coordination helps avoid administrative errors that could jeopardize the policy’s status or the intended tax treatment of proceeds.
After an ILIT is established and funded, ongoing administration is essential. Trustees should keep accurate records of premium gifts and payments, retain correspondence with insurance carriers, and maintain accounting for trust assets. Periodic reviews ensure the trust remains aligned with estate objectives, especially after life events like births, deaths, marriages, or changes in financial circumstances. We provide guidance on trustee responsibilities and can assist with administration tasks or advise successor trustees to help ensure that the trust functions as intended for the benefit of named beneficiaries.
Trustees should maintain documentation of all gifts, premium payments, policy statements, and trust transactions to provide a clear record for beneficiaries and for potential tax reporting purposes. Good record keeping reduces the risk of disputes and helps demonstrate that the trust was administered according to its terms. We advise trustees on best practices for files, how to handle receipts and disbursements, and how to prepare records in a way that supports smooth claim processing and eventual distribution of proceeds to beneficiaries in line with the grantor’s instructions.
Periodic reviews of the ILIT and the broader estate plan help ensure continued alignment with your wishes and changing family circumstances. Life events, tax law changes, or shifts in financial goals may warrant updates to related documents such as wills, powers of attorney, or trust coordination provisions. Regular check-ins can identify necessary adjustments to beneficiary designations, trustee appointments, or funding strategies. Our firm offers review services to help clients maintain a coherent and effective estate plan that integrates the ILIT with the rest of their financial and legacy planning.
An irrevocable life insurance trust is a trust designed to own a life insurance policy and receive its death benefit, with the aim of keeping those proceeds distinct from the grantor’s taxable estate when structured properly. The trust document sets out who will receive proceeds, when distributions can be made, and who will serve as trustee to administer the trust. Because the grantor relinquishes ownership, the trust cannot be revoked by the grantor, which helps achieve the estate planning objectives of control and potential tax mitigation. To determine whether you need an ILIT, review your policy size, estate composition, and family goals. For individuals with significant life insurance and concerns about estate tax exposure, an ILIT can provide liquidity and tailored distribution instructions for beneficiaries. Even if estate taxes are not presently a concern, an ILIT can be valuable for controlling distributions and protecting proceeds for vulnerable beneficiaries, so a planning discussion can reveal whether an ILIT fits your overall strategy.
Funding premiums for an ILIT typically involves the grantor making gifts to the trust so the trustee can pay policy premiums. Many grantors use annual exclusion gifts to transfer funds to the trust each year, which the trustee documents and applies toward premium payments. Proper documentation of gifts and trustee receipts is important to support the intended tax treatment and to provide a clear administrative record for future trust management. In some cases, larger premium funding may require gift tax filings, and the timing of transfers matters if policies are transferred close to the grantor’s death. The trustee should maintain accurate records of gifts received and premium payments made, and the grantor should work with the attorney to understand filing obligations and to structure funding in a manner that aligns with the overall estate plan.
Transferring a life insurance policy to an ILIT can constitute a gift because ownership moves from the grantor to the trust. Whether a gift tax return is required depends on the value of the gift and applicable exclusions. Annual exclusion gifts are commonly used to fund premiums and may avoid gift tax reporting if they fall within the exclusion amount. For transfers that exceed annual exclusions, a gift tax return may be necessary to report the transfer and allocate lifetime exemptions if appropriate. Working with an attorney helps you determine the tax reporting requirements and evaluate strategies to minimize tax consequences. Proper timing, documentation, and funding methods can reduce surprises, and we assist clients in deciding whether transferring an existing policy or having the trust acquire a new one is most appropriate given tax considerations and the three-year lookback rule.
The three-year lookback rule states that if a policy is transferred into an ILIT within three years of the insured’s death, the proceeds may still be included in the insured’s estate for estate tax purposes. This rule prevents last-minute transfers intended to remove policy proceeds from the estate immediately before death. If you transfer ownership of an existing policy close to the time of passing, the intended estate-tax benefits may not be achieved. To avoid this issue, some clients choose to have the ILIT purchase a new policy or to make transfers well before any anticipated health decline. Discussing your timeline and health considerations with legal counsel helps decide the best course to achieve intended tax outcomes without running afoul of the lookback rule.
An ILIT can provide a degree of protection for proceeds because the trust, rather than the individual beneficiary, holds the funds under the terms of the trust. Properly drafted distribution provisions and spendthrift protections may limit beneficiaries’ direct control over assets and reduce exposure to creditors or divorce claims in some cases. However, protections depend on the trust language and applicable state law, and results can vary based on the beneficiary’s circumstances and the type of creditor claim. It is important to coordinate the ILIT with other planning tools and to consult about creditor protection strategies tailored to your situation. Addressing potential vulnerabilities in the trust document and selecting appropriate trustee powers can improve the likelihood that proceeds are preserved for intended beneficiaries and used consistent with the grantor’s goals.
Choosing a trustee involves balancing administrative competence, impartiality, and availability to manage trust duties. A trustee can be a trusted family member or friend, a corporate trustee, or a trusted advisor, depending on your preferences and the complexity of the trust. When appointing an individual trustee, consider whether they are comfortable handling premium payments, record keeping, and communication with beneficiaries. Naming successor trustees ensures continuity if the initial trustee cannot serve. We discuss trustee responsibilities with clients and provide draft provisions that clarify powers and duties to reduce ambiguity. In many cases, clients choose co-trustees or professional trustees to share administrative burdens and provide continuity over time, depending on family dynamics and the complexity of the trust administration.
An ILIT should be coordinated with a revocable living trust and a pour-over will so that all documents reflect consistent beneficiary designations and distribution objectives. A pour-over will directs probate assets into a revocable trust upon death, while the ILIT governs ownership and distribution of life insurance proceeds specifically held in the irrevocable trust. Ensuring alignment among these documents prevents contradictory instructions and helps streamline administration for trustees and executors. During estate planning, we review all documents to confirm that beneficiary designations, trustee appointments, and distribution provisions work together. This coordination reduces the risk of probate disputes, clarifies duties for trustees and executors, and promotes an orderly transfer of assets in line with the grantor’s overall plan.
When the insured dies, the ILIT typically files a claim with the insurance carrier, and the trust receives the death benefit. The trustee then administers distributions according to the trust terms, which may include immediate payments for debts and expenses, staged distributions to beneficiaries, or ongoing support for dependents. Trustees should preserve records of the claim, policy documentation, and any disbursements to maintain transparency and compliance with the trust’s provisions. Efficient administration requires clear communication with beneficiaries, proper accounting of funds, and adherence to distribution standards set in the trust. Trustees may consult with legal counsel or financial advisors to invest proceeds prudently while adhering to fiduciary responsibilities and the grantor’s instructions for the use of funds.
Because an ILIT is irrevocable, changes after creation are generally limited, and the grantor cannot unilaterally revoke or alter the trust terms. However, some flexibility can be built into the trust at the drafting stage by including limited powers of appointment or by selecting provisions that allow certain trustees to make adjustments. In select circumstances, courts or statutory procedures may permit modifications, and trustees may have limited authority to adapt administration to changing conditions while remaining faithful to the trust’s intent. If a client anticipates significant future changes, discussing possible modifications with legal counsel during drafting helps incorporate mechanisms that provide some adaptability without undermining the trust’s purpose. Periodic review of the overall estate plan can identify whether more substantive adjustments are necessary and whether alternative planning tools should be considered.
To begin setting up an ILIT in National City, contact the Law Offices of Robert P. Bergman to schedule an initial consultation. During that meeting we will review your life insurance policies, discuss estate and family goals, and assess whether an ILIT fits into your overall plan. We will also discuss timing considerations, premium funding options, trustee selection, and coordination with your other estate planning documents. If you decide to proceed, we will draft a tailored trust document, assist with transferring or issuing the life insurance policy in the trust’s name, and provide guidance on funding and record keeping. We will also prepare any required filings and help orient trustees to their administrative duties so the trust will function effectively when called upon.
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