An irrevocable life insurance trust (ILIT) is one of many ways that you can ensure your heirs benefit when you pass away. These trusts, as the name implies, can’t be revoked unless you and all the beneficiaries agree to do so. To understand more about these trusts and why they can be a good estate planning option, read through this guide.
Why would one choose an irrevocable trust?
An irrevocable trust has one key benefit over other estate disbursement options—it cannot be changed upon a whim. Since it requires you and everyone that benefits to agree on any changes, this means that your final wishes will likely be carried out as you planned. No one can take advantage of, for example, your failing mental condition as you age to change the trust to their benefit.
Couldn’t you simply gift the money now?
A life insurance trust means that you own …Read More