An Irrevocable Life Insurance Trust (ILIT) can be an important tool in estate planning for Riverbank families who want to manage life insurance proceeds, reduce estate tax exposure, and provide a controlled distribution of benefits to beneficiaries. This guide explains what an ILIT is, how it operates under California law, and the practical steps involved in creating and funding this type of trust. Whether you are considering transferring a new or existing policy into a trust or simply learning whether an ILIT fits your overall plan, the information here will help you weigh potential benefits and considerations specific to your circumstances.
Choosing to form an ILIT requires thoughtful planning around ownership, beneficiary designations, trustee selection, and funding mechanics. This overview covers common trust provisions, how gift tax and estate tax rules may affect transfers to the trust, and why timing matters for gifting and premium payments. We also describe how an ILIT interacts with other estate planning documents such as revocable living trusts, pour-over wills, and powers of attorney. By understanding these relationships, you can better coordinate your insurance planning with retirement assets, special needs protections, and business succession arrangements.
An ILIT offers the potential to keep life insurance proceeds outside of an estate for tax purposes while providing a vehicle to control distributions, protect benefits from creditors, and support long-term planning goals. For many families, placing a policy into an irrevocable trust ensures that proceeds are distributed according to the grantor’s direction rather than passing through probate. This structure can also help preserve liquidity to pay estate-related expenses and support dependent family members. The decision to use an ILIT depends on asset levels, tax considerations, beneficiary needs, and the desire to manage how proceeds are used over time.
The Law Offices of Robert P. Bergman focuses on practical, client-centered estate planning for individuals and families in Riverbank and throughout Stanislaus County. Our approach emphasizes careful document drafting, clear communication about tax and procedural consequences, and coordinated planning across wills, trusts, powers of attorney, and healthcare directives. We work with clients to structure trusts and related documents that reflect personal priorities and family dynamics while attending to administrative details that ensure plans function as intended when needed. Our goal is to provide reliable guidance and personalized solutions for each client’s situation.
An ILIT is a trust that owns life insurance policies and is designed so that proceeds are paid to the trust after the insured’s death. Because the trust is irrevocable and the insured no longer owns the policy, proceeds generally are not included in the insured’s taxable estate for federal estate tax purposes when properly established and funded. Establishing an ILIT requires selecting trustees, defining beneficiaries, adopting trust provisions for premium funding, and coordinating ownership and beneficiary designations. Proper administration, including timely gifts to the trust to cover premiums, helps preserve desired tax and creditor protections.
Timing and formalities matter when creating and funding an ILIT. Transfers of existing policies into a newly formed ILIT may be subject to a three-year lookback period for estate inclusion if the transferor retains certain incidents of ownership. Newly issued policies can be owned directly by the trust from inception, avoiding that particular issue. Trustees must follow trust terms for premium collection, payment, and distribution of proceeds. A clear funding plan prevents unintended tax consequences and helps ensure that the trust accomplishes its intended objectives for heirs and other beneficiaries.
An Irrevocable Life Insurance Trust is a legal arrangement in which the grantor transfers ownership of a life insurance policy to a separate, irrevocable trust that names beneficiaries to receive policy proceeds. The trust is governed by a trustee who administers the policy, receives proceeds, and distributes benefits according to the trust document. Because the grantor gives up ownership and control of the policy, proceeds may be excluded from the grantor’s estate for tax purposes if transfer rules are observed. The trust can include instructions for distributing funds, paying expenses, and protecting assets from creditors or unwise distributions by beneficiaries.
Important elements of an ILIT include the trust document, trustee designation, beneficiary designations, ownership transfer of the policy, and procedures for funding premium payments. The process typically begins with drafting the trust, then transferring an existing policy or arranging for a new policy owned by the trust. Gift transfers to the trust may be necessary to pay premiums, and those transfers should be documented to comply with gift tax and annual exclusion rules. Trustees should maintain proper records, issue Crummey notices if needed, and coordinate with other estate plan components to ensure the trust serves its intended role.
Understanding common terms used in ILIT planning helps clients make informed decisions. This section defines important phrases such as grantor, trustee, beneficiary, incidents of ownership, Crummey withdrawal rights, and lookback period. Familiarity with these terms clarifies how ownership, gifts, and distributions operate under federal tax rules and California law. Clear definitions also help in coordinating an ILIT with other estate planning documents like revocable trusts, pour-over wills, powers of attorney, and health care directives so that the full plan works together smoothly.
The grantor is the person who creates the trust and transfers ownership of a life insurance policy or other property into the trust. The grantor typically relinquishes control over the transferred property, and the trust document will set out how the trustee manages the trust and distributes assets to beneficiaries. Understanding the grantor’s actions, including timing of transfers and retained rights, is critical to determining the tax treatment of trust assets and whether policy proceeds will be included in the grantor’s estate under applicable rules.
A Crummey withdrawal right is a temporary power given to trust beneficiaries to withdraw gifts made to the trust for a limited period. These rights are often used to qualify transfers to an ILIT for the annual gift tax exclusion by creating present interest in the gift. Trustees typically send notices to beneficiaries informing them of withdrawal rights; if beneficiaries do not exercise the right, the funds remain in the trust to pay premiums or for other trust purposes. Properly documented Crummey procedures help preserve favorable gift tax treatment.
Incidents of ownership refer to rights over a life insurance policy that indicate ownership, such as the ability to change beneficiaries, borrow against the policy, or surrender it for cash. If the grantor retains incidents of ownership when transferring a policy to a trust, the policy proceeds may still be included in the grantor’s estate. To achieve the intended estate tax treatment, the grantor typically must give up these ownership powers when placing a policy into an ILIT.
The three-year lookback period is the rule that includes transferred life insurance in the grantor’s estate if the grantor dies within three years of transferring an existing policy to the trust while retaining certain ownership rights. This provision discourages transfers made primarily to avoid estate inclusion shortly before death. Proper planning often considers whether to transfer an existing policy or have the trust own a newly issued policy to avoid the lookback issue.
When deciding among options such as keeping a policy personally owned, naming beneficiaries directly, or placing a policy in an ILIT, consider factors like estate tax exposure, creditor protection, control over distributions, and administrative complexity. Personal ownership offers simplicity but may result in estate inclusion. An ILIT offers structured control and potential estate tax benefits but requires surrender of ownership and ongoing administration. Aligning the chosen option with retirement plans, business interests, and family needs ensures that insurance planning supports broader estate objectives and minimizes unintended consequences.
A limited approach, such as retaining personal ownership of a policy or naming beneficiaries directly, may be appropriate for individuals whose estate is unlikely to face federal estate tax or who prioritize straightforward administration. For smaller estates, the costs and administrative requirements of an ILIT might outweigh the benefits. In these situations, keeping the policy outside of a trust can provide liquidity to beneficiaries without added trust formalities, though it will pass under beneficiary designations and may be subject to probate or creditor claims depending on how ownership and beneficiaries are structured.
If the primary goal is to provide immediate, unrestricted liquidity to heirs without restrictions on how proceeds are used, direct beneficiary designations or retained ownership can be more suitable than an ILIT. This approach gives beneficiaries immediate access to policy proceeds without trustee oversight or distribution rules. While it offers simplicity, it provides less protection from creditors and offers no mechanism to manage funds over time. Families should weigh the trade-offs between prompt access to cash and the longer-term protections a trust can provide.
A comprehensive plan that includes an ILIT may be appropriate where preserving estate liquidity, coordinating life insurance with other trust arrangements, and addressing tax planning concerns are priorities. In households with multiple assets, business interests, or retirement accounts, integrating life insurance into an overall trust structure helps ensure funds are available to settle debts, taxes, and administration costs without forcing the sale of sensitive assets. Trust provisions can create a predictable source of funds for heirs while aligning with longer-term distribution goals and financial protections.
When beneficiaries include minors, people with disabilities, or individuals with creditor exposure, an ILIT can provide ongoing management and protections that direct beneficiary designations cannot. Trust provisions can control timing, conditions, and purposes for distributions, helping avoid misuse of funds and shielding proceeds from outside claims. A comprehensive approach can also coordinate with special needs planning, retirement trust arrangements, and pet or family legacy provisions so that life insurance proceeds serve multiple planning goals consistently and predictably over time.
A comprehensive approach that includes an ILIT can provide tax planning opportunities, control over the use of proceeds, and protection from probate delays. By removing the policy from the taxable estate, proceeds may pass to beneficiaries in a more tax-efficient manner when properly structured. Trust terms can set conditions for distributions, designate uses for the funds, and ensure that proceeds are managed responsibly. This arrangement also offers potential creditor protection and helps maintain privacy by avoiding public probate proceedings for life insurance proceeds held in trust.
Coordinating an ILIT with other estate planning documents provides a unified strategy that addresses liquidity, legacy goals, and beneficiary needs. When trustees are guided by clear instructions, funds can be used to pay estate expenses, support minor children, fund education, or maintain a family business according to the grantor’s wishes. Proper administration and communication with trustees and trustees’ advisors ensure premiums are paid, records are maintained, and distributions follow the trust’s objectives, creating a durable mechanism for carrying out the grantor’s intentions.
An ILIT can be an effective tool to reduce the portion of life insurance proceeds included in an estate for tax purposes when transfers and ownership are handled properly. This can provide liquidity to pay estate taxes and administrative expenses without forcing asset sales. Establishing a dedicated vehicle for insurance proceeds ensures those funds are available to meet obligations and support beneficiaries, and the trust structure allows for tailored distribution plans that match the family’s financial and legacy objectives while offering greater certainty about how proceeds will be used.
By placing life insurance in a trust with clear distribution rules, grantors can protect beneficiaries from immediate windfalls that could be mismanaged or subject to creditor claims. Trust provisions can stagger distributions, require trustee approval for certain expenditures, or provide for needs-based distributions to support education, healthcare, or maintenance. This control helps ensure proceeds are used in ways that reflect the grantor’s values and long-term intentions, while also offering a structured process for trustees to follow during administration and after policy proceeds are received.
When creating an ILIT, confirm that ownership of the policy is properly transferred to the trust and that beneficiary designations reflect trust ownership rather than the individual owner. Mistakes in title or beneficiary designation can undermine the intended estate tax treatment or create complications for trust administration. Keep clear records of transfers and communications with the insurance company, and coordinate any changes to beneficiaries or policy terms with trustee instructions to avoid unintended consequences that could affect the plan’s effectiveness.
Selecting trustees who can manage investment and distribution decisions, communicate with beneficiaries, and maintain accurate records is important for long-term trust administration. Identify successor trustees and provide guidance in the trust document regarding decision-making authority, distribution standards, and conflict-of-interest rules. Trustees should be capable of working with insurance companies, accountants, and other advisors to handle premium payments, tax filings, and claim administration. Thoughtful trustee provisions reduce the potential for disputes and help ensure continuity in carrying out the grantor’s wishes.
Residents of Riverbank may consider an ILIT when they want to protect life insurance proceeds from estate inclusion, provide a dedicated source of liquidity for estate settlement, or control how insurance benefits are distributed to heirs. Families with significant assets, business interests, or concerns about beneficiary protection may find an ILIT aligns with their planning goals. The trust can also complement other estate planning instruments such as revocable living trusts and pour-over wills, ensuring that life insurance proceeds are managed according to a broader legacy or family-support plan.
Other reasons to consider an ILIT include the desire to shield proceeds from certain creditors, provide ongoing support for minors or vulnerable beneficiaries, and create a predictable mechanism for addressing estate taxes or administrative costs. Coordination with retirement accounts, healthcare directives, and guardianship nominations helps create a cohesive plan for families. Assessing these needs in light of California law and federal tax rules allows individuals to determine whether the benefits of an ILIT justify the administrative commitments and loss of direct ownership.
Common circumstances that prompt consideration of an ILIT include having a large estate that may be subject to federal estate taxes, owning a business that requires liquidity for succession planning, having beneficiaries who may need long-term financial oversight, or seeking to protect proceeds from potential creditor claims. Additionally, individuals who want to coordinate life insurance with retirement planning and trust arrangements often find that an ILIT brings clarity and structure to how insurance proceeds will be used to meet estate obligations and family needs after the insured’s death.
Individuals with significant assets or complex holdings may use an ILIT as part of a strategy to manage estate tax exposure and provide liquidity. Trust ownership of policies can separate insurance proceeds from the gross estate and create a reliable source of funds for taxes, debts, or the ongoing support of family members. Coordinating this approach with other estate planning documents ensures trust distributions align with broader objectives like business continuity or retirement account planning to avoid unintended forced sales or family disputes.
When beneficiaries include minors, young adults, or people with financial vulnerabilities, an ILIT allows the grantor to specify how and when proceeds will be distributed. Trust provisions can set schedules, approve distributions for education or healthcare, and require trustee oversight for larger disbursements. This structure helps reduce the risk of mismanagement of a sudden inheritance and provides a framework for trustees to act in beneficiaries’ best financial interests while following the grantor’s documented intentions.
Tax planning considerations often drive the decision to use an ILIT. By transferring ownership of life insurance policies to an irrevocable trust, a grantor may prevent proceeds from being included in the taxable estate, subject to applicable rules and timing requirements. This can be particularly important for estates that are close to or above federal exemption thresholds. Proper drafting, funding, and administration help ensure trust provisions operate as intended and that the plan avoids pitfalls such as unintended retention of ownership rights.
The Law Offices of Robert P. Bergman provides local estate planning services tailored to the needs of Riverbank residents. We assist with drafting and implementing ILITs, coordinating revocable trusts and wills, preparing powers of attorney and advance health care directives, and handling related trust and probate matters. Our practice focuses on clear communication, careful documentation, and practical solutions that reflect each client’s family dynamics and financial goals. We help clients navigate administrative steps and ensure their plans are ready when they are needed most.
Clients choose our firm for thoughtful, personalized estate planning that emphasizes clarity and durability. We work to simplify complex decisions, draft documents that reflect clients’ intentions, and coordinate multiple planning elements such as trusts, wills, powers of attorney, and health care directives. Our practice supports clients through every stage of the process, from initial planning and document preparation to funding and trustee guidance, ensuring plans are properly implemented and maintained over time to remain effective as circumstances change.
We prioritize practical guidance about timing, funding, and administration issues that can affect the success of an ILIT, including how to avoid unintended tax consequences and document gift transfers for premium payments. The firm provides hands-on assistance with trust funding, communication with insurance companies, and trustee onboarding. Our goal is to deliver reliable planning that reduces future burdens on families and helps ensure that the grantor’s wishes are respected and carried out efficiently and professionally.
Our team also supports clients in coordinating their estate plan with retirement account designations, special needs considerations, guardianship nominations, and pet trusts when those elements are relevant. We focus on building a cohesive plan that balances legal, financial, and personal priorities. By maintaining clear records and providing straightforward advice, we help clients feel confident that their estate planning decisions will provide protection and peace of mind for their loved ones.
Our process begins with an initial consultation to understand your goals, financial profile, and family situation. We then recommend a tailored approach, draft the ILIT document with clear trustee powers and distribution instructions, and coordinate policy ownership transfers or new policy issuances to ensure proper funding. We prepare any required notices, assist with premium funding arrangements, and provide trustees with the documentation they need for ongoing administration. We also review related estate planning documents to ensure consistency across the plan.
During the first step, we gather details about your assets, beneficiaries, and planning goals to determine whether an ILIT suits your situation and how it should be structured in conjunction with other estate planning documents. This phase includes discussing potential tax implications, ownership timing issues, and trustee selection. We outline the recommended path forward, including draft provisions and funding options, so you can make informed decisions about the trust’s terms and how to proceed with policy transfers or new policy ownership.
We collect comprehensive information about your financial accounts, existing insurance policies, retirement assets, business interests, and family circumstances to design an ILIT that complements your broader estate plan. Understanding these details helps us coordinate beneficiary designations, identify funding sources for premiums, and address potential conflicts between documents. This thorough review ensures the trust accomplishes intended outcomes and integrates smoothly with other planning measures like revocable trusts, pour-over wills, and guardianship nominations for minor children.
We provide guidance on whether to transfer an existing policy to the ILIT or have the trust acquire a newly issued policy, given the potential implications of transfer rules and the three-year lookback period. We discuss the need for documented gifts to fund premiums, possible use of Crummey withdrawal notices, and coordination with tax advisors when appropriate. Careful timing and documentation are essential to achieving the desired estate and tax outcomes and avoiding unintended ownership consequences.
In the second step, we prepare the ILIT document tailored to your objectives and complete the administrative steps to transfer ownership or arrange for trust-owned insurance. This stage includes work with the insurance company to change ownership and beneficiary designations if transferring a policy, preparing Crummey notices for annual gifts if used, and setting up procedures for premium contributions. Accurate recordkeeping during funding helps support the tax position and ensures the trust remains in compliance with its terms.
We finalize and execute the trust documents and coordinate directly with insurers to update policy ownership, beneficiary designations, and any necessary forms. Proper execution and insurer acknowledgement are essential to avoid administrative misunderstandings that could compromise the trust’s intended function. We also ensure trustees receive copies of the trust, policy documentation, and written instructions to streamline premium payments and trust administration going forward.
Setting up a reliable funding mechanism for premiums is important to keep the policy in force. We document annual gifts or other funding sources, prepare beneficiary notices when required, and maintain the records needed to support the tax treatment of those gifts. Clear documentation includes copies of notices sent to beneficiaries, bank transfers or checks into the trust, and trustee acknowledgements so that the trust’s funding history is verifiable for future review.
After the ILIT is funded and the policy is owned by the trust, trustees should follow the trust terms for premium payments, recordkeeping, and distribution policies. We provide guidance to trustees on maintaining accurate records, filing any necessary tax returns, and preparing for claim administration upon the insured’s death. Periodic reviews of the trust and related estate planning documents help ensure that the arrangement continues to align with changing laws, family circumstances, and financial goals.
Trustees are responsible for paying premiums, maintaining records of gifts and transactions, and following distribution instructions set out in the trust document. Proper recordkeeping includes copies of insurance statements, proof of premium payments, Crummey notice logs, and beneficiary communications. These records support the trust’s administration and tax treatment and help trustees fulfill fiduciary duties with transparency and accountability throughout the life of the trust.
Upon the insured’s death, trustees must file a claim with the insurance company, collect proceeds, and distribute funds according to the trust instructions. Trustees should be prepared to handle creditor claims, funeral and estate expenses, and tax-related matters as directed by the trust. Careful adherence to the trust’s distribution terms and thorough documentation throughout the claims process helps ensure an orderly transition of funds to beneficiaries in line with the grantor’s expressed intentions.
An Irrevocable Life Insurance Trust is a trust that owns a life insurance policy and receives the policy proceeds when the insured dies. The grantor establishes the trust, names beneficiaries, and transfers ownership of the policy to the trust. Because the trust owns the policy, the proceeds are held and distributed according to the trust’s terms, providing control over how funds are used and distributed. Trustees manage the policy, pay premiums as directed, and distribute proceeds to beneficiaries in line with the trust document. The trust structure also creates formal administration procedures for funding and recordkeeping. Setting up an ILIT involves drafting the trust, transferring or issuing a policy to the trust, and arranging funding for premiums. If the trust is properly structured and the grantor relinquishes ownership rights, proceeds may be excluded from the grantor’s estate for federal estate tax purposes. Timing of transfers, documentation of gifts, and trustee procedures like Crummey notices all play a role in achieving the trust’s intended tax and administrative outcomes. Coordination with other estate planning documents ensures a cohesive plan.
Placing a policy in an ILIT can generally prevent proceeds from being included in the grantor’s estate if the trust is irrevocable and the grantor has given up incidents of ownership. However, transfers of existing policies may be subject to a three-year lookback rule that can cause the proceeds to be included in the estate if death occurs within that period. Ensuring that the grantor no longer maintains ownership-like powers and documenting the transfer properly are key parts of maintaining the intended tax treatment. Because rules and personal circumstances vary, planning decisions should account for timing, the type of policy, and how transfers are executed. For some clients, having the trust own a newly issued policy avoids lookback concerns altogether. Proper documentation of gifts used to fund premiums and careful administration by trustees further supports the trust’s position and reduces the risk of unintended estate inclusion or administrative problems.
Premiums for a policy owned by an ILIT are typically paid from gifts contributed to the trust by the grantor or by other designated contributors. When annual gift tax exclusions are used, the trustee will often provide beneficiaries with Crummey notices to create present interest in the gifts, qualifying them for exclusion. Alternatively, other funding arrangements such as transfers of liquid assets into the trust can be used to cover premiums. Clear documentation of these transfers is important to substantiate the method of funding. Trustees must follow the trust’s procedures for accepting and applying gifts to premium payments. Maintaining accurate records of contributions and notices helps support tax positions and demonstrates that premiums were paid as intended. Coordination with financial accounts and timely funding helps prevent policy lapse and ensures the trust retains the benefits the grantor intended to provide for beneficiaries.
A Crummey notice is a written notice to beneficiaries that informs them of a temporary right to withdraw a gift made to the trust. These notices are used to create a present interest in gifts so they can qualify for the annual gift tax exclusion. The notice gives beneficiaries a short window in which they may exercise the withdrawal right; if they do not act, the funds remain in the trust to be used for premium payments or other trust purposes. Properly executed notices and documentation of beneficiaries’ non-withdrawal help maintain the intended tax treatment. Crummey procedures should be applied consistently and recorded carefully. Trustees should follow the notice provisions specified in the trust document and retain proof that notices were sent. Clear recordkeeping and adherence to the trust’s terms are important to support the use of annual exclusions and to avoid disputes among beneficiaries or questions from tax authorities about the timing and nature of gifts.
An ILIT can offer a degree of protection from creditors because the trust, rather than the grantor, owns the policy and the proceeds are held in trust for the beneficiaries. When assets are properly held in an irrevocable trust, they are generally not subject to claims against the grantor’s estate. That said, creditor protection depends on trust terms, timing of transfers, and applicable state laws. For beneficiaries, protection can also be enhanced by trust provisions that limit direct distributions and include spendthrift clauses where effective under state law. It is important to consider the interplay between creditor law and estate planning goals when evaluating an ILIT. Transfers made with the intent to hinder, delay, or defraud creditors may be subject to challenge. Proper planning, reasonable timing, and legal compliance help maximize the protective benefits of a trust while minimizing vulnerability to creditor claims or litigation.
The three-year lookback period applies when an individual transfers an existing life insurance policy to another owner and then dies within three years of the transfer. Under this rule, if certain ownership rights were retained, the transferred policy’s proceeds may be included in the decedent’s estate. The purpose of the rule is to prevent last-minute transfers designed solely to avoid estate inclusion. When considering transferring an existing policy to an ILIT, clients must take care to evaluate the timing and any retained rights that could trigger inclusion under the lookback rule. Alternatives include having the ILIT acquire a newly issued policy or waiting beyond the three-year period after transfer before relying on the estate tax benefits. Detailed planning and documentation are required to support the intended treatment, and families should consider how the lookback rule interacts with their overall estate timeline and objectives.
Selecting a trustee involves balancing trust administration skills, financial judgment, and the ability to communicate with beneficiaries and service providers. Trustees may be family members, trusted individuals, or corporate trustees depending on the circumstances. The trustee’s duties include managing the policy, paying premiums, keeping records, issuing required notices, filing any necessary tax paperwork, and distributing proceeds according to the trust’s instructions. Naming successor trustees and providing guidance in the trust document helps ensure continuity of administration over time. Trustees should be willing to act impartially and follow fiduciary standards set out in the trust and state law. Discussing trustee responsibilities in advance with potential appointees helps ensure they understand the time commitments and administrative tasks involved. Clear trustee provisions and accessible documentation reduce the likelihood of disputes and help trustees carry out their duties efficiently when the time comes.
An ILIT can be coordinated with other trust arrangements such as special needs trusts or retirement plan trusts to achieve multiple planning goals. For example, life insurance proceeds held in an ILIT can provide liquidity that complements a special needs plan without disqualifying a beneficiary from public benefits when structured correctly. Similarly, ILIT distributions can be designed to work alongside retirement plan trust provisions to provide supplemental support. Careful coordination ensures that different trust provisions do not conflict and that beneficiary needs and eligibility considerations are respected. Integration across trusts requires deliberate drafting and collaboration with advisors who understand the interplay of benefit eligibility rules, tax consequences, and trust administration. Where beneficiaries rely on public benefits or have specific long-term needs, tailoring distribution language and trustee discretion can help preserve essential protections while delivering intended financial support.
If a trustee cannot find funds to pay policy premiums, the policy risks lapsing, which can eliminate the trust’s intended benefits. To reduce this risk, the trust should include clear funding provisions and a plan for premium contributions, such as annual gifts, designated premium-paying accounts, or instructions for other contributors. Trustees should monitor premium due dates, maintain communication with the insurer, and document funding efforts. Contingency language in the trust may address steps to take if premiums cannot be paid, including possible loans, transfers, or policy conversion options where permitted. Proactive funding and regular reviews of trust liquidity significantly reduce the risk of policy lapse. Trustees who keep detailed records and follow the trust’s funding protocol help ensure continuity of coverage. If challenges arise, timely communication with advisors and the insurance company may create options to preserve policy value or implement alternate solutions to meet the grantor’s objectives.
It is advisable to review an ILIT and the broader estate plan periodically, such as after major life events or changes in financial circumstances. Events like marriage, divorce, births, deaths, significant changes in assets, or changes in tax law may warrant revisiting trust terms, trustee designations, and funding arrangements. Regular reviews help ensure that the trust’s provisions continue to align with current objectives, beneficiary needs, and legal requirements, and allow for adjustments to funding or administrative procedures as circumstances evolve. Ongoing maintenance also includes verifying that premium funding mechanisms remain viable and that records of gifts and notices are up to date. Periodic check-ins with legal counsel and financial advisors help identify potential issues before they affect coverage or trust effectiveness, keeping the overall estate plan aligned with the grantor’s long-term intentions.
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