Irrevocable Life Insurance Trust
An irrevocable life insurance trust (ILIT) is a type of trust that holds title to an insurance policy in order to reduce any estate tax liability for the insured. A properly structured ILIT will not generate estate tax for the insured/decedent.
This brief overview of some important considerations associated with irrevocable life insurance trusts (ILIT) is by no means comprehensive. Always seek the advice of a competent professional when making important financial and legal decisions.