What is an irrevocable life insurance trust (ILIT)?

An irrevocable life insurance trust (ILIT) is a type of trust that can be used to hold life insurance policies in Florida. This type of trust is created in order to avoid having the death benefits of the life insurance policy become part of the deceased person’s estate. As its name implies, an ILIT is irrevocable, meaning that it cannot be revoked or modified after it has been created. With an ILIT, the policyholder will name a trustee to manage the trust and will also name a beneficiary, who will receive the death benefit when the policyholder dies. The trustee of the ILIT will take on the responsibility of managing the trust, including making sure that the premiums of the policy are paid on time. The trustee will be responsible for making sure that the policyholder’s wishes are carried out. The policyholder will also be required to give up control of the life insurance policy, so the beneficiary can receive the death benefits. The ILIT can be used to ensure that the policyholder’s death benefits are distributed to the desired individuals or organizations. An ILIT can also be used to help reduce estate taxes, since the death benefits will not be considered part of the deceased’s estate. This is a great way to ensure that your loved ones will be taken care of after you die without affecting your estate.

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What is an irrevocable life insurance trust (ILIT)?

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