Using an Irrevocable Life Insurance Trust to Avoid Estate Taxes
Establishing an irrevocable life insurance trust is a way to avoid paying taxes on life insurance proceeds. Ownership of insurance policies are transferred to the trust and proceeds are exempt from estate taxation.
The irrevocable life insurance trust includes a contract which is used to distribute proceeds to designated beneficiaries. The trust itself is designated as the primary beneficiary. Upon death, proceeds are transferred into the trust and held to provide benefits to a spouse, children, or other beneficiaries. Read more…
Categories: Estate Plan Trusts Tags: Avoid Estate Taxes, Estate Plan Trusts, irrevocable life insurance trust