Life Insurance Trust

an irrevocable, non-amendable trust which is both the owner and beneficiary of one or more life insurance policies. 

Living Life by the ocean at sunset


Frequently, life insurance planning can make the difference in a family’s future; whether it is to:

• provide the financial security  in the event one of the family’s wage earners loses their life

• replace wealth tied up in land or business or is otherwise illiquid

• protect children with special needs

• fund marital agreements

• resolve blended family issues

• protect family fortunes

An Irrevocable Life Insurance Trust lets a client reduce or even eliminate estate taxes, so more of an estate can go to a client’s loved ones. It also provides more control over your insurance policies and the money that is paid from them.

How does an Insurance Trust work?

If the life insurance policy and the benefits are not owned by the client, but are owned by a trust and the insured has no “incidents of ownership” in the policy, then the proceeds of the policy are not included in the estate of the insured at the time of his or her death. If it is not included in the estate of the insured it is not subject to estate tax (45% rate in 2009, 0 in 2010 but 55% in 2011). The value is protected for the benefit of the client’s beneficiaries – estate tax free.


Just a few questions and we will contact you soon!