An Irrevocable Life Insurance Trust (ILIT) can be an important component of a well-rounded estate plan for residents of Campbell, San Jose, and greater Santa Clara County. At the Law Offices of Robert P. Bergman, our focus is helping families understand how an ILIT can remove life insurance proceeds from a taxable estate while providing clear management and distribution of funds to beneficiaries. In addition to offering guidance on trust terms and funding strategies, we walk clients through how an ILIT interacts with revocable trusts, pour-over wills, and other estate planning documents common in California settings.
This guide explains what an ILIT does, how it is created and funded, and why some families consider it part of their broader estate planning approach. Whether you are looking to protect life insurance proceeds from estate taxes, provide liquidity to cover debts and final expenses, or set clear distribution rules for loved ones, understanding the mechanics and choices around an ILIT is essential. We also describe how an ILIT fits with retirement plan trusts, special needs planning, and pet or charitable provisions used in local estate plans.
An ILIT matters because it creates a controlled, separate ownership structure for life insurance policies that can reduce estate tax exposure and protect proceeds from creditor claims. For many families in California, the ability to keep life insurance outside of the taxable estate helps preserve wealth for the next generation and provides immediate liquidity to pay debts, taxes, and final expenses. ILITs can be tailored to provide ongoing trust management, staggered distributions, and protections for beneficiaries. They also work alongside other estate documents like revocable living trusts, pour-over wills, and powers of attorney to create a cohesive plan.
The Law Offices of Robert P. Bergman, located near Campbell and San Jose, provides practical estate planning services focused on clear, client-centered outcomes. Our team works directly with clients to draft ILITs and related documents, explain funding mechanics, and coordinate with insurance agents and financial advisors as needed. We emphasize straightforward drafting that aligns with California probate and tax considerations and we help families implement trust funding, beneficiary designations, and related filings. Clients receive ongoing support for trust administration questions and suggested updates following major life events.
An ILIT is a trust that owns one or more life insurance policies and is designed so that proceeds are payable to the trust rather than directly to the insured’s estate. Because the trust, not the insured, owns the policy, the death benefit generally will not be included in the insured’s estate for tax purposes. ILITs require careful drafting to ensure they meet legal requirements, and funding arrangements must be structured to avoid unintended inclusion of the life insurance proceeds in the estate. We discuss grantor retained benefits, Crummey withdrawal notices, and practical administration steps in local practice.
Creating an ILIT also entails choosing trustees, naming beneficiaries and alternates, and establishing distribution provisions that reflect your family’s needs. Trustees can be individuals or institutions that will manage policy premiums, receive policy proceeds, and distribute funds according to the trust terms. An ILIT can provide for immediate liquidity to pay taxes and debts, provide income to a surviving spouse, or create long-term support for children or grandchildren. Proper coordination with financial advisors and frequent review help ensure the ILIT remains aligned with changing circumstances and California law.
An ILIT is a legally binding, irrevocable trust created to own life insurance policies on an individual’s life. The trust becomes the policy owner and beneficiary, and the trustee administers the policy by paying premiums and collecting proceeds upon the insured’s death. This arrangement separates the death benefit from the insured’s probate estate, which can reduce estate tax exposure and simplify distribution to beneficiaries. Terms of the ILIT define how proceeds will be used, whether for debt payment, support, or other purposes. Trustees must act in fiduciary ways consistent with trust terms and California law.
Key elements of an ILIT include the trust instrument itself, trustee appointment, beneficiary designations, funding instructions, and precise guidance on premium payments and withdrawal rights. Important administrative processes include funding the trust with gifts to pay policy premiums, preparing Crummey notices when applicable, tracking premium contributions, and maintaining records to substantiate the trust’s independence from the insured’s estate. Trustees also handle policy loans, beneficiary claims, and distributions when proceeds are received, following the trust terms and applicable California statutes.
Understanding common terms helps when making decisions about an ILIT. This section explains the concepts you will encounter, including ownership versus beneficiary distinctions, gift tax implications, valuations, and administrative mechanics. Clear definitions help clients coordinate an ILIT with revocable trusts, wills, and other planning tools commonly used in Campbell and Santa Clara County. We encourage clients to keep records, maintain communication with trustees, and consult with insurance and tax professionals as necessary to track premium funding and comply with reporting responsibilities.
The grantor is the person who creates and funds the ILIT by transferring ownership of the life insurance policy or making gifts to the trust to pay premiums. Once an ILIT is irrevocable, the grantor relinquishes direct control over trust assets, and the trust terms govern how proceeds are used. It is important for the grantor to work closely with the trustee and financial professionals to implement funding strategies that support the trust’s long-term goals while aligning with applicable tax rules and California law. Proper documentation and clear gift intent are essential.
A Crummey right is a limited, temporary withdrawal right given to beneficiaries that allows gifts to an ILIT to qualify for the annual gift tax exclusion. Typically, the trustee provides a notice to beneficiaries informing them of the contribution and their short period to withdraw funds. Most beneficiaries do not exercise withdrawal rights, allowing the trust to use the funds for insurance premiums. Properly administered Crummey notices and documentation help preserve tax benefits and reduce the risk that the gifts will be treated as taxable transfers.
The trustee is the individual or entity that manages the ILIT, pays premiums, maintains records, and ultimately distributes proceeds in accordance with the trust’s provisions. Trustees have a fiduciary duty to act in the best interests of beneficiaries and must follow the terms of the trust document and applicable California trust law. Selecting a trustee involves balancing reliability, administrative ability, and familiarity with trust administration processes required for an ILIT, including coordination with insurance carriers and financial advisors.
Estate inclusion rules determine whether life insurance proceeds are included in the insured’s taxable estate. If the insured retained incidents of ownership or other rights in the policy, proceeds may be pulled back into the estate under federal and state rules. Proper ILIT drafting and ownership transfer before the insured’s death aim to avoid estate inclusion, but timing, retained benefits, and policy changes must be handled carefully to maintain the intended tax treatment. Coordination with other estate documents is also important to avoid unexpected results.
When evaluating ILITs versus alternatives, clients weigh control, tax outcomes, and administrative complexity. Some people keep life insurance within a revocable living trust or own it personally, which can be simpler but may leave proceeds subject to estate inclusion. An ILIT adds administrative steps but offers potential tax advantages and clearer protection for beneficiaries. The right choice depends on individual goals, the size of the estate, the nature of beneficiaries’ needs, and coordination with retirement plan trusts, pour-over wills, and other planning tools commonly used by families in Campbell and Santa Clara County.
A limited approach, such as personal ownership of a life insurance policy or inclusion in a revocable living trust, may be appropriate for smaller estates where estate tax exposure is unlikely and beneficiaries primarily need a straightforward source of liquidity. In these situations, the administrative burden of an ILIT might outweigh its benefits. For families whose immediate priority is ease of management and minimal legal complexity, maintaining the policy in a less formal structure can meet needs while still offering a degree of planning and beneficiary designation clarity.
A limited approach may also work for short-term objectives while a more comprehensive plan is developed. For example, if a family needs temporary coverage or is awaiting final decisions about long-term inheritance arrangements, personal ownership or simple designation changes may suffice. This temporary route allows time to assess overall estate planning goals and coordinate with retirement assets and other trusts. It is still important to document intentions clearly and review arrangements regularly to ensure they remain aligned with changing family circumstances and legal considerations.
A comprehensive approach is often appropriate when estates have significant assets, multiple property types, or complex family dynamics. For households where estate tax exposure is a concern, an ILIT integrated with other trusts and planning documents provides a coordinated strategy to preserve value for beneficiaries. Such planning considers retirement plan trusts, special needs arrangements, and business succession issues, and ensures premium funding, beneficiary designations, and trustee powers are aligned with desired outcomes and California legal requirements.
Comprehensive planning becomes valuable when clients want structured distributions, long-term asset management, or safeguards for vulnerable beneficiaries. An ILIT can be tailored to provide staged distributions, incentives for beneficiary behavior, or protections against creditors and divorce claims. Working with a legal advisor to draft precise trust language, select trustees, and coordinate beneficiary notices ensures the trust operates smoothly when proceeds are paid. This level of detail helps avoid disputes and provides clarity for trustees managing beneficiary expectations.
A coordinated, comprehensive estate plan that includes an ILIT can protect life insurance proceeds from estate inclusion, provide liquidity for taxes and debts, and preserve funds for future generations. It also allows for tailored distribution terms that fit the family’s needs, from immediate support to long-term education or health care funding. When integrated with other documents like revocable living trusts, pour-over wills, and powers of attorney, an ILIT helps ensure there is a clear, documented path for managing assets and handling beneficiary claims in accordance with California law.
Beyond tax and probate planning, a comprehensive approach reduces uncertainty at a difficult time by setting out who will make decisions, how funds will be used, and when distributions will occur. Trustees are given guidance on managing incoming proceeds, balancing competing needs, and coordinating with financial custodians. For families with special needs members, blended families, or business succession concerns, the combined effect of thoughtful trust drafting and coordinated administration can ensure that life insurance proceeds serve the long-term intentions of the grantor and protect beneficiaries against unanticipated claims.
One primary benefit of using an ILIT in a comprehensive plan is the potential to mitigate estate taxes and reduce assets subject to probate, preserving more wealth for beneficiaries. By ensuring the trust is the owner and beneficiary of the policy, the death benefit generally passes outside probate and is not included in the taxable estate. This result helps cover estate obligations without diminishing assets left to heirs. Careful coordination and ongoing review are necessary to maintain these benefits as laws and personal circumstances evolve.
An ILIT also provides a mechanism for controlled distributions that protect beneficiaries from poor financial decisions, creditors, or divorce settlements. The trust terms can limit outright distributions and require the trustee to manage funds for ongoing needs such as education, health care, or maintenance. This structure offers families a way to preserve the long-term intent of the grantor while giving trustees the authority to make prudent financial decisions that reflect the beneficiaries’ best interests under the trust terms and applicable California rules.
Coordinating with insurance agents and financial advisors helps make sure policy ownership transfers, premium payments, and beneficiary designations are implemented correctly. Discussing the plan with carriers early can prevent procedural delays and clarify whether any policy changes might create unintended tax consequences. Clear communication about premium funding sources and expected contributions helps trustees manage payments without interruption. Working as a team reduces administrative friction and keeps the ILIT operating as intended when the policy matures or proceeds are payable to the trust.
An ILIT should be reviewed periodically and after significant life events such as marriage, divorce, births, deaths, or changes in financial circumstances. Regular reviews ensure that trustee appointments remain appropriate, funding strategies are effective, and beneficiaries are identified correctly. Changes in laws or estate tax thresholds may affect the ILIT’s intended benefits, so periodic evaluation helps determine whether adjustments in related estate planning documents are necessary. Proactive reviews reduce surprises and ensure the ILIT continues to reflect the grantor’s goals.
Consider an ILIT if preserving life insurance proceeds from estate inclusion is a priority, if you need to provide liquidity to pay estate taxes or debts, or if you want to provide controlled, trust-based distributions to beneficiaries. Families with significant assets, business interests, or complex beneficiary needs often find that an ILIT complements other planning documents like revocable living trusts and retirement plan trusts. In Campbell and throughout Santa Clara County, individuals evaluate ILITs as part of a larger strategy to protect family wealth and provide clear direction for trustees after the insured’s death.
An ILIT is also worth considering when there are special circumstances such as beneficiaries with disabilities, blended family dynamics, or concerns about creditor claims and divorce settlements. The trust’s structure can include provisions that address these issues while offering flexibility for trustees to manage distributions as needed. Even if estate tax exposure is not immediate, families sometimes use an ILIT to create certainty about how life insurance proceeds will be used, ensuring that the grantor’s intentions are honored in a predictable, legally enforceable manner.
Common circumstances include high net worth estates where estate tax mitigation is needed, family-owned business succession planning that requires liquidity, and cases where beneficiaries require long-term oversight of distributions. Other typical situations are when the insured wants to prevent proceeds from being subject to probate or creditor claims, when there are dependent family members with ongoing support needs, or when the grantor wants to leave instructions for how proceeds should be managed for minor children or grandchildren.
For households with significant assets, an ILIT helps reduce the taxable estate and preserves life insurance proceeds for heirs. The trust structure separates the death benefit from personal assets, offering a planning tool to address estate tax liabilities and preserve liquidity for business continuity or family support. Work with your legal and financial advisors to ensure that the ILIT integrates with retirement plan trusts, business succession documents, and other estate planning instruments used to manage a complex asset portfolio under California law.
When beneficiaries may require long-term financial oversight due to age, disability, or limited financial experience, an ILIT can define how and when distributions are made. Trust provisions can set conditions for disbursement, fund education, or provide income for living expenses while protecting assets from creditors. This approach provides structure and continuity, giving trustees clear guidance to manage resources responsibly for the beneficiaries’ welfare under the terms set by the grantor.
Business owners often use life insurance to fund buy-sell agreements and provide liquidity for business succession, and placing policies into an ILIT keeps proceeds available outside the owner’s taxable estate. The ILIT can be drafted to coordinate with buy-sell provisions, retirement plan trusts, and other succession documents to ensure the business remains stable after an owner’s death. Proper planning also avoids unexpected estate tax burdens that could force the sale of business interests to cover obligations.
The Law Offices of Robert P. Bergman serves Campbell and nearby communities in Santa Clara County with practical estate planning services, including drafting and administering ILITs. We help clients evaluate whether an ILIT complements their broader plan, prepare the necessary trust documents, and coordinate policy ownership transfers and funding arrangements. Our goal is to provide clear guidance on implementing and maintaining an ILIT in compliance with California law while helping families achieve their objectives for protecting life insurance proceeds and ensuring smooth administration for trustees and beneficiaries.
Choosing legal representation for ILIT planning means selecting a team that understands both the practical and legal dimensions of trust ownership and administration. Our approach emphasizes clear communication, detailed drafting, and coordination with insurers and financial advisors to implement your ILIT correctly. We help clients choose trustees, draft beneficiary provisions, and set funding mechanisms that support the trust’s objectives. Every plan is tailored to the individual or family’s priorities, whether protecting assets, providing structured distributions, or supporting long-term financial goals.
We assist clients throughout the implementation process, from initial trust drafting to trustee guidance on premium payments and Crummey notice procedures. Our office is available to answer questions and provide updates as family and financial circumstances change. We also coordinate with accountants and insurance carriers to help preserve intended tax benefits and ensure smooth administration. Clients receive practical recommendations for recordkeeping and beneficiary communication to reduce the likelihood of disputes when the trust becomes operative.
For residents of Campbell and the surrounding Santa Clara County area, our firm offers responsive service and thoughtful planning that integrates ILITs with other estate instruments such as revocable living trusts, pour-over wills, powers of attorney, and healthcare directives. We strive to make the process manageable and understandable, providing documentation and instructions trustees can follow to administer the ILIT effectively when the need arises.
Our process begins with a focused meeting to identify goals, family dynamics, and financial circumstances relevant to ILIT planning. We review existing documents, insurance policies, and beneficiary designations to design an appropriate trust structure. After drafting the ILIT, we coordinate policy transfers, prepare any funding gifts, and provide trustee guidance on notices and premium administration. Follow-up includes review sessions to confirm successful implementation and to recommend updates after major life events or changes in law that could affect trust outcomes.
The first step is a comprehensive meeting to understand your goals, existing estate plan elements, and the specifics of any life insurance policies you hold. We review revocable trusts, wills, beneficiary designations, and financial accounts to determine how an ILIT will integrate with your overall plan. This phase also identifies potential complications such as retained ownership rights, policy loans, or pending changes that could affect the trust’s tax treatment, and outlines a clear plan for implementing the ILIT correctly.
We ask clients to provide policy statements, insurance carrier contact information, and a summary of financial assets so we can evaluate whether transferring ownership of a policy to an ILIT is feasible and advisable. This information helps determine premium funding needs, the timing of transfers, and whether additional estate planning measures are warranted. Clear documentation supports accurate drafting and reduces the risk of unintended consequences during the ownership transfer process.
Understanding family goals and beneficiary circumstances allows us to draft trust provisions that reflect intended uses for insurance proceeds, whether for immediate liquidity, income support, education, or other long-term needs. We discuss trustee roles, distribution timing, and protections for vulnerable beneficiaries. This collaborative discussion frames the ILIT’s terms so they align with personal objectives and the broader estate plan, ensuring trustees have clear direction to fulfill the grantor’s intentions.
Once decisions are made, we draft the ILIT document to reflect the agreed terms, appoint trustees, and specify premium funding and distribution provisions. We coordinate with insurance carriers to effect policy ownership transfers and with financial advisors to arrange gifts for premium payments. If Crummey notices are part of the funding strategy, we prepare templates and instructions for administration. Our goal is to ensure a seamless transfer process while maintaining compliance with rules that determine estate inclusion and tax treatment.
Execution of the trust and any assignment or ownership transfer forms must be carefully coordinated with the insurance company to avoid lapses in coverage or unintended policy changes. We prepare the necessary legal instruments, confirm carrier requirements, and help clients complete signatures and acknowledgments. Properly executed documents and clear instructions to the carrier ensure the ILIT takes ownership as intended and that premium payment arrangements are in place to maintain the policy.
Funding the ILIT typically involves making annual gifts to the trust sufficient to pay premiums and issuing Crummey notices to beneficiaries when required. We provide guidance on gift documentation, timing, and template notices to help trustees administer these steps. Clear procedures for funding and notices strengthen the ILIT’s position and help preserve the intended tax benefits while creating a reliable system trustees can follow to keep the policy in force and documented for future administration.
After the ILIT is implemented, trustees must manage premium payments, maintain records of gifts and notices, and handle any policy changes or claims. We offer support for trustees regarding distributions, beneficiary claims, and tax reporting questions. Periodic reviews are recommended to confirm the ILIT still aligns with the overall plan, to adjust trustee appointments if necessary, and to update documents after major life events. Ongoing attention helps preserve the intended benefits and ensures a smooth administration when proceeds are payable.
We provide trustees with guidance for recordkeeping, premium payment tracking, and responding to beneficiary inquiries. Good recordkeeping includes copies of insurance statements, premium receipts, and Crummey notices, which help validate proper administration and support tax positions. Trustees also benefit from instructions on how to handle policy loans, changes, and coordination with other trustees or fiduciaries involved in the broader estate administration.
Regular reassessment of the ILIT and related estate documents ensures alignment with current laws, financial circumstances, and family needs. We recommend a schedule for review after major life events such as marriage, divorce, births, or changes in asset values. At each review, we evaluate whether trustee appointments remain appropriate, whether funding strategies are sufficient to maintain coverage, and whether adjustments are needed to keep the ILIT functioning as intended under California rules.
An Irrevocable Life Insurance Trust (ILIT) is a trust that becomes the owner and beneficiary of life insurance policies, removing the death benefit from the insured’s probate estate under typical circumstances. By transferring ownership to the trust, the proceeds are generally distributed by the trustee according to the trust terms rather than passing through probate, which can simplify administration and potentially reduce estate tax exposure. An ILIT can be useful when your goals include preserving insurance proceeds for heirs, providing liquidity for estate obligations, or creating structured distributions for beneficiaries with long-term needs. Deciding whether you need an ILIT depends on your overall estate plan, asset size, and family considerations. If your estate could be subject to significant estate taxes, or if you want to protect proceeds from creditor claims and ensure controlled distributions, an ILIT may be appropriate. It is also relevant for business owners who require liquidity for succession plans. Implementing an ILIT requires careful drafting, coordination with insurers, and ongoing administration, so many people consult with legal and financial advisors to determine if it aligns with their objectives.
Funding premiums for an ILIT commonly involves the grantor making gifts to the trust sufficient to cover insurance costs. These gifts are then used by the trustee to pay premiums. To preserve gift tax benefits, annual gifts to the trust are often structured to qualify for the annual gift tax exclusion, sometimes using Crummey withdrawal rights that give beneficiaries a short period to withdraw the contribution. Most beneficiaries do not exercise the withdrawal right, allowing the trustee to use the funds to maintain the policy. It is important to document contributions and the use of funds carefully. Trustees should keep records of gift transfers, premium payments, and any notices provided to beneficiaries. Coordination with financial and tax advisors can help ensure that funding arrangements meet both cash flow needs and tax reporting expectations, and that payment schedules avoid lapses in coverage that might undermine the trust’s purpose.
Transferring an existing life insurance policy into an ILIT is often possible but requires attention to timing and ownership changes. The transfer typically involves changing the policy owner to the trust and confirming that the insurer accepts the assignment. However, transfers occurring within three years of the insured’s death may be subject to rules that pull the proceeds back into the estate for estate tax purposes. Additionally, any retained incidents of ownership must be avoided to preserve the trust’s tax treatment. Before transferring a policy, it is advisable to review current policy terms, existing loans, and any beneficiary designations. We also coordinate with the insurance carrier to ensure a smooth assignment and advise clients on alternative approaches if the timing or policy features create potential complications. Proper documentation of the transfer and subsequent funding is essential to safeguard the intended planning outcomes.
An ILIT can offer protection from creditor claims and divorce settlements in some circumstances because the trust, rather than the insured or beneficiary, holds the policy proceeds. By keeping the death benefit outside the insured’s probate estate and by using trust provisions that restrict outright distributions, the proceeds may be less vulnerable to creditor claims or division in family law matters. The extent of protection depends on trust drafting, state law, and the timing of transfers relative to the insured’s death. While an ILIT provides a level of safeguarding, it is not an absolute shield in every situation. Creditors or family law courts may challenge transfers made with intent to defraud creditors or under certain fact patterns. Careful drafting, appropriate timing, and professional coordination help reduce risks and improve the likelihood that the trust will function as intended to protect proceeds for beneficiaries in accordance with California rules.
Trustees are chosen by the grantor and can be trusted family members, friends, or professional fiduciaries, depending on the administration needs and complexity involved. Trustees must manage the trust assets, pay premiums, maintain records, issue beneficiary notices as required, and distribute proceeds according to the trust terms. They have a fiduciary duty to act in the best interests of beneficiaries and to follow the instructions laid out in the trust document while complying with applicable law. When selecting a trustee, consider reliability, availability, financial understanding, and willingness to carry out administrative responsibilities. Some families appoint co-trustees or successor trustees to provide continuity. Clear trust language that outlines trustee powers and procedures helps trustees perform their duties consistently and reduces the potential for disputes among beneficiaries.
Crummey notices are letters or communications sent to beneficiaries that inform them of a gift to the ILIT and provide a short window in which they may withdraw the gifted amount. The purpose is to create a present interest in the gift so it may qualify for the annual gift tax exclusion. Beneficiaries rarely exercise the withdrawal right, allowing the funds to remain in the trust to pay insurance premiums, but the notice and brief withdrawal opportunity are important formalities to support exclusion eligibility. Properly administered Crummey notices should be documented and timed consistent with trust funding events. Trustees should keep copies of notices and records showing that beneficiaries received or were given the opportunity to receive them. These practices help preserve tax benefits and provide a clear audit trail for the funding of premiums and the administration of the ILIT under applicable tax rules.
An ILIT should be coordinated with other estate planning documents such as revocable living trusts, pour-over wills, powers of attorney, and healthcare directives. Coordination ensures that beneficiary designations, funding strategies, and trustee powers align with the broader plan and that there are no conflicts between documents. For instance, a pour-over will can funnel assets to a revocable trust, while the ILIT specifically governs life insurance proceeds, so clear delineation of roles avoids overlap and confusion during administration. When integrating documents, it is important to review beneficiary designations on retirement accounts and insurance policies to ensure they reflect the desired plan. Consistent language and coordinated provisions help trustees and fiduciaries understand how funds should be used and reduce the likelihood of disputes. Periodic reviews ensure continued alignment as family and financial circumstances evolve.
If premiums cannot be paid, several outcomes are possible depending on policy features, including accumulation of loans against the policy, reduction of the death benefit, or policy lapse. Trustees should monitor premium schedules and communicate with the grantor or funding sources to prevent lapses. If there is a premium shortfall, exploring alternatives such as raising funds from other trust assets, converting policy types, or negotiating with the insurer may preserve coverage and the ILIT’s purpose. Proactive financial planning and contingency provisions in the trust can reduce the chance of premium payment problems. Regular reviews of funding adequacy and insurance performance enable trustees and grantors to adjust funding strategies or consider alternative policies. Early engagement with advisors helps identify solutions before a critical coverage lapse occurs.
A revocable living trust and an ILIT serve different functions. A revocable trust is flexible, can be amended or revoked during the grantor’s lifetime, and typically holds general assets for probate avoidance and management. An ILIT, being irrevocable, is specifically designed to own life insurance and to separate the death benefit from the taxable estate. While a revocable trust may include named beneficiaries for certain assets, it does not provide the same potential estate inclusion protection for life insurance proceeds that an ILIT does when properly implemented. Whether you need an ILIT in addition to a revocable trust depends on your goals and asset profile. If keeping life insurance proceeds outside the taxable estate and creating controlled distributions for beneficiaries are priorities, then adding an ILIT to a revocable trust-centered plan can provide important benefits. Coordination between the two instruments is important to ensure consistent outcomes across your estate plan.
Review frequency depends on life changes and shifts in financial circumstances, but it is wise to reassess an ILIT and related documents after major events such as marriage, divorce, births, deaths, or changes in asset values. Regular review ensures that trustee appointments, beneficiary designations, and funding strategies remain appropriate and that the trust will operate as intended when needed. Periodic reviews also allow adjustments if legal or tax landscapes change in ways that affect trust benefits or administration. In addition to life events, schedule routine check-ins every few years to confirm premium funding remains sufficient, policies are in force, and records are up to date. These reviews help avoid surprises and ensure that trustees have the information they need to manage the ILIT responsibly while preserving the grantor’s objectives under California law.
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