Life Insurance Trust (ILIT)
LIFE INSURANCE TRUST (ILIT)
Life Insurance Trust or ILIT’s are designed to own life insurance policies and distribute the proceeds to the beneficiaries of the trust. The benefit of having the ILIT own the insurance policy is that the death benefits pass to the trust beneficiaries without incurring any estate tax liability. Otherwise, life insurance proceeds are included in the decedent’s estate and are subject to estate tax.