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Irrevocable Life Insurance Trusts the assets from your heirs’ potential
The Irrevocable Life Insurance Trust creditors.
(“ILIT”) is a unique instrument that Estate Administration
serves several important purposes, The following documents should be
two of which we will touch on here. brought to your attorney after the
Many people are unaware that the demise of a loved one:
proceeds of life insurance policies 1. An original or certified copy of a
are considered part of your estate
for estate tax purposes. By using a death certificate (look for a raised
properly drafted ILIT, however, you will seal)
bring the value of any life insurance 2. The original will (if any)
polices you might hold outside of your 3. A funeral bill marked “Paid”
estate for estate tax purposes on both 4. A basic family tree with contact
the state and federal level. For those information for close relatives
of you whose net worth puts them at A list of assets including:
or near the estate tax threshold, an 1. Real Estate
ILIT is a necessary part of your estate 2. Bank and Brokerage Accounts
plan. 3. Vehicles
An ILIT will also permit you to direct 4. Retirement Accounts
the disposition of your life insurance 5. Annuities
proceeds in a more specific manner 6. Insurance Policies
than simply designating a beneficiary. 7. Valuable Collections
Frequently, our clients have their The above documents and information
ILIT benefit their spouse during the will assist your attorney in drafting
spouse’s lifetime, and upon the death the probate or administration petition
of the spouse, benefit the children for your loved one’s estate. It is
of their marriage. Since an ILIT is a important to note that the IRS form
trust, you can give specific directions
in your trust instrument as to how the Ruland Funeral Home - Page 41
assets should be used, and protect
