Page 34 - OvertonFuneralHome_Mag
P. 34
Irrevocable Life Insurance Trusts the assets from your heirs’ potential
The Irrevocable Life Insurance Trust creditors.
(“ILIT”) is a unique instrument that
serves several important purposes, Estate Administration
two of which we will touch on here. The following documents should be
Many people are unaware that the brought to your attorney after the
proceeds of life insurance policies demise of a loved one:
are considered part of your estate
for estate tax purposes. By using a 1. An original or certified copy of a
properly drafted ILIT, however, you will death certificate (look for a raised
bring the value of any life insurance seal)
polices you might hold outside of your 2. The original will (if any)
estate for estate tax purposes on both 3. A funeral bill marked “Paid”
the state and federal level. For those 4. A basic family tree with contact
of you whose net worth puts them at information for close relatives
or near the estate tax threshold, an
ILIT is a necessary part of your estate A list of assets including:
plan.
1. Real Estate
An ILIT will also permit you to direct 2. Bank and Brokerage Accounts
the disposition of your life insurance 3. Vehicles
proceeds in a more specific manner 4. Retirement Accounts
than simply designating a beneficiary. 5. Annuities
Frequently, our clients have their 6. Insurance Policies
ILIT benefit their spouse during the 7. Valuable Collections
spouse’s lifetime, and upon the death
of the spouse, benefit the children The above documents and information
of their marriage. Since an ILIT is a will assist your attorney in drafting
trust, you can give specific directions the probate or administration petition
in your trust instrument as to how the for your loved one’s estate. It is
assets should be used, and protect important to note that the IRS form
Page 34 - Overton Funeral Home, Inc.
