Irrevocable Life Insurance Trusts (ILITs) are a valuable estate planning tool used to reduce or eliminate the estate tax. Life insurance is one of the most oversold products in America. Everyone cares about their family and for a few hundred dollars a month you can protect your family with millions of dollars of coverage. The problem is that people of modest means can be forced into an estate tax situation due to life insurance.
The solution is to get that life insurance out of your gross estate using an irrevocable life insurance trust (ILIT). The process is simple and it essentially involves signing a document which names your spouse as trustee and the kids as beneficiaries.
Your insurance agent can help with the change of registration and the change of beneficiary and AvoidProbate can help by drafting the trust document and making sure that you understand everything so that your family and your wealth is protected.