Irrevocable Life Insurance Trust (I.L.I.T.)

An Irrevocable Life Insurance Trust (I.L.I.T.) is a specialized estate planning tool designed to remove life insurance proceeds from a taxable estate, ensuring tax-efficient wealth transfer. By placing a life insurance policy inside an I.L.I.T., high-net-worth individuals can protect assets from estate taxes while maintaining control over how proceeds are distributed to beneficiaries.

Key Benefits of an I.L.I.T.

• Estate tax reduction – Life insurance proceeds are excluded from the taxable estate.
• Asset protection – Shields policy proceeds from creditors and legal claims.
• Controlled distribution – Ensures beneficiaries receive funds according to structured terms.
• Liquidity for estate planning – Provides cash to cover estate taxes or other obligations without forcing asset sales.

An I.L.I.T. can be a critical tool for high-net-worth individuals looking to preserve wealth and minimize estate tax exposure. Contact us to determine if an I.L.I.T. aligns with your estate planning strategy.

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