An irrevocable life insurance trust (ILIT) is a strategic estate planning tool used to remove life insurance proceeds from a taxable estate while giving individuals control over how those proceeds are distributed to beneficiaries. At the Law Offices of Robert P. Bergman we assist residents of East Porterville and nearby Tulare County with creating ILITs that reflect family goals and state law considerations. Planning an ILIT requires careful coordination with existing estate documents such as wills, revocable trusts, and beneficiary designations to avoid unintended tax or probate consequences, and we help clients understand the options and mechanics so their wishes are carried out effectively.
Establishing an ILIT involves setting up a trust, transferring ownership of a life insurance policy to that trust, and naming trustees and beneficiaries to manage and receive policy proceeds. For many clients this approach provides greater privacy, helps reduce estate tax exposure, and sets clear rules for how death benefits are handled for heirs. The process also often involves coordinating with financial institutions and insurance carriers to complete transfers properly. We work with individuals to tailor ILIT provisions to family dynamics, intended timelines for distributions, and long-term planning goals to ensure the trust functions as intended when it becomes operative.
An ILIT can offer meaningful advantages in estate planning by removing life insurance proceeds from the value of a taxable estate, creating a dedicated vehicle to provide liquidity for estate settlement, and enabling control over the timing and conditions of distributions to beneficiaries. This trust can also protect proceeds from certain creditor claims and help ensure funds are used for intended purposes like education, ongoing care, or maintaining a family business. Crafting an ILIT requires attention to tax rules and transfer timing so the trust achieves desired benefits, and careful drafting helps prevent disputes, facilitate administration, and align the trust with existing estate planning documents.
The Law Offices of Robert P. Bergman provides estate planning services tailored to California residents, including those in East Porterville and Tulare County. Our practice focuses on practical planning solutions that reflect clients’ family circumstances, asset composition, and long-term goals. We coordinate documents such as revocable living trusts, pour-over wills, powers of attorney, and healthcare directives alongside an ILIT to create a cohesive plan. Our approach emphasizes clear communication, careful drafting to address tax and administration issues, and ongoing review to keep plans current with life changes and legal developments in California.
An ILIT is a trust that becomes the owner and beneficiary of a life insurance policy. By transferring an existing policy or arranging for the trust to purchase a new policy, the grantor removes the policy’s death benefit from their taxable estate. The trust is administered by a trustee who follows the trust terms to manage premium payments and distribute proceeds when the insured passes away. Establishing an ILIT requires attention to gift tax rules, three-year estate inclusion periods, and coordination with other planning documents so the trust functions as intended and provides the desired protections and distribution controls.
Using an ILIT commonly supports goals like providing liquidity for estate administration, preserving assets for younger beneficiaries, funding education, or preserving business continuity. The trust instrument can specify flexible or restrictive distribution provisions, direct how proceeds are invested, and appoint successor trustees to ensure continuity. Because transfers of life insurance policies have technical requirements and timing considerations, early planning and precise execution are important. We assist clients in evaluating whether an ILIT fits their overall plan, selecting trustees, structuring distributions, and completing the required transfers with insurers and financial institutions.
An irrevocable life insurance trust is a legal arrangement in which the trust legally owns one or more life insurance policies and is named as the beneficiary. Once ownership is transferred, the grantor gives up direct control over the policy assets, and the trust governs how proceeds are held and distributed after the insured’s death. By removing death benefits from the insured’s probate estate, an ILIT can reduce the estate’s taxable value and provide a dedicated source of cash to pay estate taxes or maintain family liquidity. Properly implementing an ILIT requires careful drafting and coordination to avoid unintended inclusion in the estate for tax purposes.
Creating an ILIT involves drafting a trust instrument, naming a trustee and beneficiaries, transferring ownership of a life insurance policy to the trust, and documenting any funding arrangements for premiums. The trustee’s responsibilities include managing policy payments, maintaining records, and administering distributions according to the trust’s terms. Additional steps might include coordinating premium gifts to the trust, preparing gift tax filings if needed, and ensuring transfers meet timing rules to avoid estate inclusion. Proper attention to these elements helps ensure the trust operates smoothly and achieves the intended estate planning objectives.
A clear understanding of common terms helps when considering an ILIT. Terms such as grantor, trustee, beneficiary, irrevocability, and premium funding arise frequently during planning. Knowing how each role functions and the legal implications of transferring policy ownership provides context for decision making. This section defines important concepts in plain language and explains how they relate to trust administration, tax considerations, and the coordination of an ILIT with other estate planning documents. Familiarity with these terms helps clients make informed choices and ask targeted questions during the planning process.
The grantor, also called the settlor, is the person who creates the trust and transfers assets into it. In the context of an ILIT, the grantor typically establishes the trust and arranges for a life insurance policy to be owned by the trust. The grantor must understand that transfers to an ILIT are generally irrevocable, meaning the grantor gives up direct control over the policy once ownership moves to the trust. The grantor can still shape trust terms, including naming beneficiaries and setting distribution parameters, and should coordinate the ILIT with other estate planning documents when creating the trust.
The trustee is the individual or financial entity responsible for managing the trust assets, making premium payments if necessary, and carrying out distribution instructions to beneficiaries. For an ILIT the trustee interacts with the insurance company, handles administrative tasks, and follows the trust’s terms to preserve the intended benefits. Trustees must maintain careful records and act in the best interests of the beneficiaries as set out by the trust instrument. Choosing the right trustee involves considering trust administration skills, availability, and the capacity to manage paperwork and communication with heirs and financial institutions.
A beneficiary is a person or entity designated to receive trust assets, including life insurance proceeds held by an ILIT. Beneficiaries can be family members, charitable organizations, or other entities named in the trust. The trust document determines the circumstances and timing of distributions, including whether proceeds are paid outright, held in trust for a period, or distributed according to conditions. Clear beneficiary designations and trust provisions help reduce disputes and ensure that funds are used as intended, particularly where beneficiaries include minor children, beneficiaries with special needs, or those with potential creditor concerns.
Irrevocability refers to the fact that, once established, an ILIT generally cannot be modified or revoked by the grantor without consent or court intervention, depending on circumstances. Funding describes how the trust acquires ownership of the life insurance policy, whether through transferring an existing policy or having the trust purchase a new policy with contributions from the grantor. Proper funding and timing are essential because transfers made too close to the insured’s death may remain part of the estate for tax purposes. Planning funding mechanisms carefully helps the ILIT deliver intended tax and distribution results.
When planning life insurance within an estate plan, clients can choose a limited approach focusing on a single document or a more comprehensive approach that coordinates multiple documents and planning vehicles. A limited approach may work for simple estates with modest assets, but more complex situations often benefit from an integrated plan including trusts, wills, powers of attorney, and healthcare directives. The choice depends on family dynamics, asset size, tax exposure, and long-term goals. A careful comparison of options and thoughtful coordination ensures the life insurance strategy supports overall planning objectives and reduces the risk of unintended consequences.
A limited approach can be appropriate for individuals whose estates fall well below estate tax thresholds and whose family dynamics are straightforward. If a life insurance policy will pass directly to a spouse or a small number of beneficiaries and there is no need for complex distribution controls, minimal additional trust planning may suffice. In such cases, clients may prefer a simpler set of documents to reduce administrative complexity. Nonetheless, it remains important to review beneficiary designations and ensure coordination with any existing wills or revocable trusts so the policy’s proceeds reach the intended recipients smoothly.
When beneficiaries are mature, financially capable adults and there is no foreseeable need for trust-based controls, a straightforward beneficiary designation and revocable trust may provide the needed protection. Simpler structures can reduce administrative burdens and make the grantor’s intentions transparent. However, even in simple situations, it is wise to consider potential creditor claims, divorce risks, and the need for liquidity to handle estate settlement expenses. A review of the policy and estate plan helps confirm that a limited approach will not leave gaps or unintended exposures for beneficiaries.
A comprehensive planning approach is often advisable when estate size, tax exposure, family dynamics, or business interests increase complexity. For clients with significant assets, blended families, minors, or beneficiaries with special needs, layering an ILIT with revocable trusts, retirement plan planning, and powers of attorney helps create a cohesive plan that addresses liquidity, tax issues, and long-term care needs. A comprehensive plan reduces the risk of conflicting documents and ensures that life insurance proceeds integrate smoothly into the overall estate strategy for the benefit of intended recipients.
When clients hold retirement accounts, business interests, or multiple insurance policies, careful coordination prevents inadvertent tax consequences or gaps in liquidity. An ILIT can be structured to provide cash for estate taxes or buy-sell arrangements, while other documents handle disposition of business interests and retirement assets. Aligning beneficiary designations, trust provisions, and ownership positions reduces administrative friction and helps preserve value for heirs. For many clients this coordination is central to ensuring their plan accomplishes both short-term and long-term objectives.
A comprehensive approach that includes an ILIT alongside wills, living trusts, powers of attorney, and healthcare directives offers coordinated protection and clarity. This integration can provide liquidity to pay taxes and debts, preserve inheritances for beneficiaries, and reduce the burden on family members during administration. It can also offer privacy by avoiding probate for life insurance proceeds and aligning distributions with long-term family priorities. Thoughtful drafting and regular review help keep the plan aligned with changes in the law, family circumstances, and financial situations to maintain intended outcomes over time.
Working with a comprehensive plan also helps anticipate and address potential complications such as creditor claims, special needs considerations, and the interplay between insurance proceeds and government benefits. By creating clear mechanisms for trustees to manage proceeds and distributing funds under defined terms, clients can reduce disputes and ensure funds are used for purposes like education, medical care, or business succession. Ongoing communication and periodic updates ensure the trust and related documents reflect changes in assets, family status, and legal requirements.
An ILIT provides an immediate, dedicated source of funds that can be used to settle estate taxes, pay debts, or support beneficiaries without requiring a sale of estate assets. When tied into a comprehensive plan, the strategy reduces the administrative burden on heirs and helps maintain the long-term value of the estate. Trustees can manage proceeds according to clear instructions, providing predictable outcomes and preserving assets that might otherwise be dissipated to meet immediate cash needs. Careful coordination ensures the trust meets legal and tax timing requirements for intended benefits.
An ILIT enables the grantor to set conditions and schedules for distributions to beneficiaries, protecting assets from mismanagement, creditor claims, or premature dispersal. This control can be especially helpful where beneficiaries are young, have ongoing care needs, or are involved in high-risk professions. The trust instrument can create mechanisms for trustees to allocate funds for education, health care, or income support. When combined with other planning vehicles, this structure contributes to a comprehensive strategy that supports family security and long-term financial goals while maintaining clear administration instructions.
Begin planning well before the anticipated need to avoid timing issues that can undermine the benefits of an ILIT. Transfers of existing policies can be subject to lookback rules that keep proceeds in the estate if the insured dies within a short period following transfer. Early planning also allows time to coordinate beneficiary designations, revocable trusts, and other documents so the ILIT functions as intended. Review and update related estate documents regularly to reflect changes in family circumstances, asset composition, and legal developments that may affect the trust.
When a grantor intends to provide premiums to an ILIT, it is important to document the gifting process properly so funds provided to the trustee are treated consistently and avoid unintended tax consequences. Some grantors use annual exclusion gifts or other mechanisms to fund premium payments. Keeping clear records of gifts and trustee receipts, and filing gift tax returns when appropriate, helps preserve the trust’s status and avoids challenges. Discussing funding strategies before transferring a policy ensures the transaction is completed in line with the grantor’s broader estate planning objectives.
Consider an ILIT if you want a dedicated vehicle to receive life insurance proceeds outside of probate, provide liquidity for estate obligations, or control how benefits are used by beneficiaries. An ILIT can help preserve family assets, provide for minor children or family members with special needs, and offer a mechanism to maintain a family business or pay estate taxes without forcing asset sales. For many clients, an ILIT provides peace of mind by creating structured guidance for trustees and limiting the potential for family disputes regarding the use of insurance proceeds.
An ILIT can also be appropriate when coordinating with retirement assets, real estate holdings, or other wealth that could expose an estate to tax consequences. It is useful when grantors want to set distribution conditions or preserve funds for specific purposes like education, ongoing care, or a charitable legacy. Because ILITs require careful timing and drafting, discussing objectives early ensures the trust achieves intended benefits and aligns with the rest of your estate plan, reducing the risk of unintended tax or administration issues later on.
People frequently consider an ILIT when they have substantial life insurance policies, anticipate estate tax concerns, wish to protect proceeds from probate, or desire controlled distributions for heirs. Other common reasons include preserving family business continuity, protecting assets from creditor claims, planning for beneficiaries with special needs, and ensuring funds are used for specified purposes. An ILIT can play a central role in a broader estate planning strategy by providing dedicated, trust-held insurance proceeds available when needed to support the estate and family members.
Grantors with large life insurance policies often use an ILIT to ensure proceeds are not included in the taxable estate and to provide liquidity to pay estate obligations. Without such planning, families might need to sell assets to raise cash for taxes or creditors. An ILIT offers a prearranged source of funds that can ease settlement, preserve illiquid assets like real estate or business interests, and provide for heirs according to the trust terms. Proper planning avoids unnecessary disruption and preserves estate value for intended beneficiaries.
When beneficiaries are minors, have special needs, or may face creditor exposure, an ILIT can provide mechanisms to hold and distribute funds under conditions tailored to their circumstances. The trust can include provisions for education, healthcare, and staged distributions to ensure needs are met while protecting funds from imprudent dissipation. Such structured distribution safeguards assets and gives trustees clear authority to manage proceeds in the best long-term interests of beneficiaries, providing financial stability for those who may require continued oversight.
Business owners may use an ILIT to hold life insurance that funds buy-sell agreements or supports key transitions after an owner’s death. Holding policies in trust ensures that proceeds are used as intended for business continuity, avoid inclusion in the personal estate, and provide liquidity to buy out interests or settle obligations. Trust provisions can set clear priorities for distribution and management that align with business succession objectives, helping preserve the enterprise and reduce the likelihood of family or partner disputes over how proceeds should be allocated.
Although the Law Offices of Robert P. Bergman are based in San Jose, we serve clients across California including East Porterville and Tulare County. We provide personalized consultations to review your assets, family circumstances, and goals for life insurance planning. Whether you are considering creating an ILIT, transferring an existing policy, or coordinating life insurance with other estate planning documents, we offer practical guidance, prepare the necessary documents, and assist with implementation to ensure your plan functions smoothly when it is needed most.
Clients work with our firm because we emphasize clear communication, thoughtful document drafting, and practical coordination across estate planning instruments. We help clients navigate the technical requirements involved in transferring policies and funding trust premiums, and we prepare documents that reflect family goals while addressing tax and administrative considerations. We take time to explain possible outcomes and alternatives, helping clients make informed decisions about whether an ILIT fits their overall plan and how best to structure it for their family’s protection and financial continuity.
Our process includes identifying potential pitfalls, coordinating beneficiary designations, and aligning the ILIT with wills, revocable trusts, and powers of attorney. We prepare clear trust language to minimize ambiguity for trustees and beneficiaries, ensuring distributions are handled according to your wishes. We also assist with steps like premium gifting arrangements and any required filings, helping clients avoid common errors that can undermine the trust’s benefits. Ongoing reviews keep the plan current with changes in assets, family dynamics, and relevant laws to maintain intended outcomes.
We prioritize practical solutions that balance legal protections with administrative ease for families. Our goal is to create workably drafted documents and a smooth implementation path so trustees can fulfill their duties without unnecessary friction. We explain trustee roles and prepare clients to document funding and transfers correctly. For those with more complex needs, we collaborate with financial advisors and other professionals to ensure the ILIT and related estate planning tools operate effectively in concert with broader financial and succession plans.
Our approach to setting up an ILIT begins with a thorough review of assets, insurance policies, beneficiary designations, and family needs. We then draft trust documents tailored to your goals, select and document trustee appointments, and coordinate transfer or purchase of policies. We assist with premium funding methods and any necessary filings, and we provide guidance to trustees about administrative duties. Clear steps and careful documentation reduce the risk of unintended estate inclusion and help ensure the trust operates according to your wishes when it becomes operative.
The first step is a comprehensive consultation to gather information about existing life insurance policies, estate planning documents, family considerations, and financial goals. We review beneficiary designations, current wills or trusts, and related documents to identify how an ILIT should be structured and what assets or policies will be transferred. This stage also involves discussing trusteeship, distribution objectives, and timing considerations so the trust will function as intended and integrate seamlessly into the broader estate plan.
During the initial assessment we determine whether existing policies should be transferred to the trust or whether the trust should acquire new policies. We consider the three-year rule and other timing issues that may cause inclusion of proceeds in the estate if transfers are too close to the insured’s death. Evaluating policy terms, cash values, and premium structures enables us to advise on the most effective path to achieve planning goals while respecting tax and administrative constraints.
We examine wills, revocable living trusts, powers of attorney, and healthcare directives to ensure consistent beneficiary designations and complementary provisions. Coordination helps avoid conflicting instructions and reduces the risk of beneficiary disputes. Aligning the ILIT with these documents ensures that the trust’s role in the overall plan is clear, that successor trustee appointments are in place, and that administration will proceed smoothly when funds become payable to the trust.
After the planning analysis we prepare the trust instrument and any supporting documents necessary to transfer policy ownership and fund premiums. Drafting includes clear distribution provisions, trustee powers, successor trustee appointments, and instructions for premium payments. We tailor the trust language to the client’s goals and California law requirements, and we prepare ancillary documents such as letters of instructions for trustees and forms needed by insurance carriers to document transfers or ownership changes.
The trust’s distribution provisions determine how and when beneficiaries receive proceeds, and we design these provisions to reflect the grantor’s intentions for timing, purposes, or conditions. Whether the goal is to provide staged distributions, funds for education, or discretionary management by trustees, clear drafting reduces ambiguity and helps trustees administer proceeds faithfully. We draft provisions that balance control with practical administration to achieve family objectives while remaining administrable over time.
To complete policy transfers or purchases we prepare the necessary forms and coordinate with insurance carriers to document changes in ownership and beneficiary designations. If the grantor will fund premiums through gifts, we prepare documentation to support those transfers and advise about gift tax reporting when applicable. Thorough documentation helps protect the trust’s intended tax and legal treatment and provides trustees with a clear record of the trust’s assets and funding history.
Once the ILIT is in place, the trustee administers the trust according to its terms, handling premium payments, recordkeeping, and distributions when proceeds become payable. We provide guidance to trustees about their responsibilities and assist with any required reporting or interactions with beneficiaries. Periodic review of the trust and related estate documents ensures the plan continues to reflect changing circumstances, asset values, and legal updates, and we recommend revisiting the plan after major life events or material changes to financial status.
We help trustees understand obligations such as maintaining separate trust records, documenting premium receipts, and following the trust’s distribution schedules. Good recordkeeping supports transparent administration and helps prevent disputes or challenges from beneficiaries. Trustees should keep detailed records of gifts from the grantor, premium payments, and communications with insurance carriers to ensure the trust functions smoothly and aligns with the grantor’s documented intentions.
Regular reviews of the ILIT and related estate planning documents are important to address changes such as new assets, beneficiary circumstances, or changes in law. Periodic updates help ensure that distributions and beneficiary designations remain consistent with current wishes and that funding mechanisms continue to be appropriate. We work with clients to schedule reviews and recommend updates when life events or financial changes indicate the need for modifications to maintain the trust’s effectiveness.
An irrevocable life insurance trust is a trust created to own and control a life insurance policy and its proceeds. By placing ownership of the policy in the trust, the policy proceeds are generally kept out of the grantor’s probate estate, providing a source of funds for beneficiaries and reducing potential estate tax exposure. The trust instrument establishes how proceeds will be managed and distributed, who will serve as trustee, and any conditions for distributions so that beneficiaries receive funds according to the grantor’s wishes. Setting up an ILIT requires careful drafting and execution, including transferring ownership with the insurance carrier and documenting gift transactions when the grantor intends to fund premiums. It is important to coordinate the ILIT with other estate planning documents and understand timing rules that may affect whether proceeds remain in the estate. Early discussion and planning help ensure the trust carries out intended objectives and avoids unintended tax or administrative complications.
Transferring a life insurance policy into an ILIT can remove the death benefit from the grantor’s taxable estate, which may reduce estate tax exposure for larger estates. However, transfers made within certain periods before death can still be included in the estate for tax purposes, so timing matters. Properly structured transfers and ownership documentation are essential to achieve the anticipated estate tax benefits without inadvertently causing estate inclusion. It is also important to coordinate the ILIT with other planning elements, as removing policy proceeds from the estate can affect liquidity for taxes and debts. Planning may include funding mechanisms for premiums and instructions for trustees to use proceeds in ways that align with broader estate goals. Reviewing overall asset composition and tax exposure helps determine whether an ILIT will provide meaningful tax benefits in a given situation.
The trustee of an ILIT manages trust assets, interacts with the insurance company, makes premium payments if required, and follows the trust’s distribution instructions. A trustee should be someone capable of recordkeeping, communication, and impartial administration. Many grantors choose a trusted family member, friend, or a corporate trustee depending on availability and capacity to handle administrative responsibilities. Trustees must act according to the trust document and keep beneficiaries informed as required. Naming successor trustees provides continuity if the initial trustee is unable or unwilling to serve. Clear instructions for trustee powers, distribution rules, and recordkeeping reduce the likelihood of disputes and help trustees administer the trust efficiently and in accordance with the grantor’s wishes.
Premium payments for an ILIT-owned policy can be handled in different ways, such as the grantor making gifts to the trust to pay premiums or the trust owning a new policy with premiums funded during the grantor’s lifetime. When gifts are used to fund premiums, documentation and careful handling of annual exclusion gifts or other gifting strategies are important to maintain the trust’s intended treatment and avoid unintended tax consequences. Trustees typically receive funds and pay premiums on behalf of the trust, keeping records of receipts and disbursements. It is important to document any gifts from the grantor, issue appropriate receipts, and maintain clear records to support the trust’s administration. Properly documenting funding arrangements and communications with the insurer prevents misunderstandings and helps maintain the trust’s effectiveness.
An irrevocable trust generally cannot be modified or revoked by the grantor once established, although there are limited circumstances where changes can be made through consent of beneficiaries or court orders depending on state law. Because ILITs are intended to be permanent arrangements, careful initial drafting is important to reflect the grantor’s long-term intentions and include flexible provisions for trustee powers and successor appointments. Periodic review of the trust and related documents is still advisable to ensure the plan continues to meet objectives. Where adjustments become necessary due to changed circumstances, options such as decanting or beneficiary consent may be considered under applicable law. Consulting with counsel before attempting modifications helps identify available mechanisms and the implications of any changes.
When the insured dies, the life insurance company pays the death benefit to the trust as the named beneficiary. The trustee then administers proceeds according to the trust terms, which may call for immediate distribution, staged distributions, or retention of funds for specific purposes such as education or ongoing care. The trust structure ensures proceeds are managed outside probate and according to the grantor’s instructions. Trust administration includes documenting receipt of proceeds, managing investments if funds are held, and distributing payments to beneficiaries as directed. Trustees should maintain records and communicate with beneficiaries about the trust’s terms and actions. Clear trust provisions and trustee guidance help ensure prompt and orderly administration when proceeds are received.
An ILIT typically operates alongside a revocable living trust by handling life insurance proceeds separately from assets held in the revocable trust. While a revocable trust can manage a broad range of assets and replace a will for probate avoidance, an ILIT specifically owns life insurance and governs the use of its proceeds under separate terms. Coordination ensures beneficiary designations and distribution plans do not conflict, and that each trust’s role in the overall estate plan is clear. When integrating an ILIT with a revocable trust, it is important to review how distributions from the ILIT may interact with revocable trust assets, including whether proceeds should be used to fund trusts or meet obligations outlined elsewhere in the plan. Clear documentation and consistent drafting across instruments reduce the risk of conflicting instructions and streamline estate administration for trustees and beneficiaries.
For beneficiaries who receive government benefits or have ongoing care needs, an ILIT can be drafted to preserve eligibility for certain programs while providing supplemental support. Careful drafting may create discretionary distributions or use separate trust provisions that protect benefits. When special needs are present, coordinating trust terms with public benefits rules ensures the trust supports the beneficiary without risking loss of critical assistance. Working with advisors familiar with benefits rules is important when drafting provisions for vulnerable beneficiaries. The ILIT can include directions for trustees to consider public benefit eligibility when making distributions and can provide mechanisms to address long-term care, medical expenses, and housing without jeopardizing essential benefits. Thoughtful drafting and trustee guidance help preserve both entitlements and supplemental support structures.
Timing is a key consideration before transferring an existing life insurance policy into an ILIT. Transfers made shortly before the insured’s death can be included in the estate under certain lookback rules, which would negate the intended removal of the proceeds from the taxable estate. Planning transfers well in advance and understanding applicable timing rules helps achieve the benefits of the ILIT without unexpected tax consequences. Other timing issues include coordinating premium funding and documenting gift arrangements to ensure the trust can pay premiums and maintain the policy in force. Early planning also allows the grantor to address possible changes in health, policy terms, or finances that could affect the feasibility of transferring ownership or purchasing a new trust-owned policy. A careful timeline reduces potential risks and facilitates smooth implementation.
Getting started with an ILIT in East Porterville begins with an initial consultation to review your life insurance policies, estate plan, family circumstances, and financial goals. We will assess whether an ILIT meets your objectives, identify appropriate trustees and beneficiaries, and outline steps for drafting and funding the trust. Early coordination ensures transfers and premium arrangements occur in a manner consistent with your broader plan. If you decide to proceed, we draft the trust instrument, prepare transfer and funding documentation, and coordinate with insurance carriers to change ownership or establish new policies owned by the trust. We also provide guidance for trustees and schedule periodic reviews to keep the plan current. Contact our office to arrange a consultation and discuss how an ILIT may fit into your estate planning strategy.
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