Irrevocable Life Insurance Trust Policies
What are Irrevocable Life Insurance Trust Policies?
An Irrevocable Life Insurance Trust is also sometimes called an "ILIT". Irrevocable literally means that something cannot be cancelled. A trust is a situation in which someone (the trustee) is put in charge of property or money that is meant to take care of or benefit someone else (the beneficiary). Because an irrevocable life insurance trust is ‘irrevocable’ once it is created and your insurance policy is part of the trust, you cannot take the policy back in your own name. You do however have the ability to closely control certain aspects of the irrevocable life insurance trust.
For example, you can designate that your 2 children be the initial beneficiaries. You can also define that each child must be 25 years old before they can receive the trust’s benefits. Irrevocable life insurance trusts can be a very helpful when planning your estate. Mutual of Alabama specializes in estate planning so be sure to discuss the benefits of having an irrevocable life insurance trust with your agent!
How does an Irrevocable Life Insurance Trust help me?
An irrevocable life insurance trust is a holding device of sorts. It essentially owns your life insurance policy for you which will reduce the size of your estate and therefore reduce your estate taxes. An irrevocable life insurance trust can even help protect the value of your life insurance policy from creditors!
Contact Mutual of Alabama to schedule your insurance and annuities consultation today.
Call us at (205) 240-4726 or Contact Us here!