Life Insurance Trust - Certified Financial Planner Conroe TX | Starr Financial

Financial & Estate Planning |  More In-Depth Information on Estate Planning |  Estate Planning FAQs |  Irrevocable Life Insurance Trust (ILIT)

Using insurance inside a trust can have a powerful impact on your estate planning strategy. Common client goals for using an ILIT include:

  • Avoiding forced liquidation to pay estate taxes on an asset the family wants to retain, such as a family business or real estate
  • Provide a safety net for potential long-term care needs in later years
  • Minimize estate tax liability at the time assets transfer to heirs
  • Provide an opportunity to enhance charitable contributions, in addition to providing for heirs
  • Provide an equitable distribution of assets to heirs
  • Provide for greater control of assets

Here are a few examples of how your might incorporate an ILIT into your estate plan:

  • Insurance policies in an ILIT are owned by the trust and the proceeds are not included in the client's estate
  • An ILIT can be paired with a Charitable Remainder Trust (CRT)
  • Life insurance with a long-term care rider can be placed inside an ILIT

 

This material contains only general descriptions and is not a solicitation to sell any insurance product or security, nor is it intended as any financial or tax advice. For information about specific insurance needs or situations, contact your insurance agent.
 
Guarantees are based on the claims paying ability of the issuing insurance company. Riders are additional guarantee options that are available to an annuity or life insurance contract holder.  While some riders are part of an existing contract, many others may carry additional fees, charges and restrictions, and the policy holder should review their contract carefully before purchasing.  .