An irrevocable life insurance trust (ILIT) is an estate planning instrument utilized by Tallahassee estate planning lawyers and specifically established to hold high-value life insurance policies. When the person who set up the trust (the trustmaker) passes away, the ILIT receives the death benefit from the life insurance. One of the key benefits of this type of trust is that the proceeds from the life insurance are not included in the deceased's taxable estate. This helps to minimize estate taxes. Additionally, the funds from the ILIT can be utilized for various purposes, such as covering estate taxes, ensuring equal inheritance distribution, supporting buy-sell agreements in businesses, or providing a bequest to heirs.
Contact our Estate Planning Attorney in Tallahassee to explore whether this type of Trust is right for you and your family.
