An Irrevocable Life Insurance Trust (ILIT) is a legal structure that owns a life insurance policy outside of your taxable estate. The trust receives the death benefit income- and estate tax-free, keeping it protected from creditors, probate, or estate taxes. ILITs give you control over how and when beneficiaries receive funds, while helping reduce estate size and ensure tax-efficient generational wealth transfer.
Ideal for affluent families, business owners, and estate planners concerned about taxes, creditor exposure, or family dynamics. ILITs are best for those seeking a structured, tax-smart legacy plan, with full control over distribution terms—while keeping assets out of the IRS’s reach and preserving more for the next generation.
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