Trust Solutions
An irrevocable life insurance trust (ILIT) is a trust solution used to remove the ownership and control of a life insurance policy from an estate. Life insurance can be used to fund estate taxes and final expenses upon the death of an individual. The grantor completely gives up all rights in the property transferred to the trust and retains no rights to revoke, terminate, or modify the trust in any material way.
When such a trust holds a life insurance policy, usually on the life (lives) of the grantor and/or a spouse, it's an ILIT. If withdrawal powers are given to the beneficiaries, it may also be referred to as a "Crummey trust."
Get started by reviewing the Irrevocable Life Insurance Trust Overview (PDF) (BB9616) for more details.
ILITs are used to accomplish some or all of the following objectives:
- Help meet the liquidity needs of the grantor's estate
- Help provide for the income needs of survivors
- Avoid the estate taxation of the life insurance death proceeds
- Shelter property in the trust from creditors at death
This sales idea is designed to help you generate sales.
Trust Management Request Turns into Sale (BB10693)
See how working with Principal Trust leads to a $1.2 million sale. (Temporarily unavailable)
Choose the trust solution that best fits your client’s needs. Refer to the Advanced Marketing Sales Library from Pentera Group, Inc. on advanced marketing topics.
ILIT Overview (BB9616)
Highlights the benefits of an irrevocable life insurance trust to your clients.
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ILIT and Gifting Sample Proposal (BB12101)
Full proposal. Front cover may be customized.
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Please use the following fact finders, dependent on your client's needs, to request this proposal.
The Estate Planning Fact Finder (BB6794) or the Estate Tax Calc Fact Finder (DD9031C).
Considering ILIT Changes (BB12115)
Use with clients to help them rethink their ILIT in times of change.
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Contingent Ownership Arrangement for Survivorship Life Insurance (BB9885)
Outlines how a contingent ownership arrangement using SUL and an ILIT works.
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Grantor Retained Annuity Trusts (GRAT) Overview (BB10420)
Explains how a GRAT works and why it may be an effective strategy for some clients.
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GRAT Sample Proposal with Financial Model (BB10096) | Request for Proposal (BB12204)
Full GRAT proposal. Front cover may be customized.
View (PDF) • Request for Proposal (DOC)
Crummey Power Overview
Overview of the Crummy Powers that secure the gift tax annual exclusion for annual gifts to an ILIT.
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Bypass (Credit Shelter) Trust Overview
Overview of how this estate tax arrangement helps married couples fully use exemptions.
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Marital Deduction and the QTIP Trust
Overview of how a Qualified Terminable Interest Property (QTIP) trust can be used to transfer property without triggering estate tax or gift tax.
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ILIT Trustee Checklist (BB9730)
Use this checklist with clients to review the life insurance policy owned by an irrevocable life insurance trust to ensure objectives of the trust are being met.
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Sample agreements:
Advanced Markets Information
Technical material for applied knowledge on a specific topic.
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View our life insurance products.
ILIT Financing Strategies Comparison (Single life) (BB11629)
Compares the features of six financing strategies for single life life insurance owned by an irrevocable life insurance trust. Includes content from BB11630.
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- Contact Us: Business and Advanced Solutions, BMA, Life Sales Support
- Request a Proposal (BB6794)
- Run an Illustration
- Underwriting
Important Information
For financial professional use only.
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