What is an insurance trust and how does it work?

An insurance trust is a legal arrangement allowed in Georgia that helps protect assets from creditors. It is also known as an irrevocable life insurance trust (ILIT). This type of trust is used to legally transfer ownership of assets to another person or entity to reduce the risk of them being taken or seized by creditors. The trust is created by a document known as a trust agreement. The agreement details who the trust is for, how much money or property it will have and who the trustees are. The trust agreement also outlines how the trust will be managed and how the money or property it holds will be used. Once the trust has been established, assets can be transferred to the trust. This is done by having the trustee sign a document that legally transfers the ownership of the assets to the trust. Once assets are in the trust, they are protected from creditors. The trustee has discretion on how the trust funds are used and who may benefit from the trust. In some cases, the trustee may even be able to use the trust funds for legal expenses or to settle a debt. In Georgia, an insurance trust can be a great tool to protect assets from creditors. It allows you to transfer ownership of assets to the trust so that they can be protected from seizure or repossession. Once assets are in the trust, the trustee can manage them according to the terms of the trust agreement.

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What is an insurance trust and how does it work?

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