Why Choose Law Offices of Rozsa Gyene for Life Insurance Trusts?
What is an Irrevocable Life Insurance Trust?
If you own a life insurance policy with a significant death benefit, an irrevocable life insurance trust may be of substantial benefit to you.
A life insurance policy owned by you on your life at the time of death will be included in your taxable estate and subject to federal estate tax if your estate is the beneficiary or you possess certain ownership rights ("incidents of ownership").
A commonly used technique to avoid inclusion in your estate as the insured, is to create an irrevocable life insurance trust (ILIT) to own the policy and receive the policy proceeds on your death.
A properly drafted and administered life insurance trust removes the life insurance proceeds from the gross estate of the insured, while also making those proceeds available as a source of liquid funds for the payment of estate taxes and other obligations.
Advanced Estate Planning Expertise
Creating an effective ILIT requires sophisticated legal expertise and attention to detail. Our attorneys have over 25 years of experience drafting trusts that meet complex IRS requirements while maximizing protection for your beneficiaries.
We ensure your ILIT is properly structured to avoid common pitfalls that could trigger estate tax inclusion, such as retained incidents of ownership or improper Crummey powers. Every detail matters when protecting millions in life insurance proceeds.
Benefits of an ILIT
Estate Tax Protection
Remove life insurance proceeds from your taxable estate, potentially saving millions in estate taxes for high-value policies.
Asset Protection
Shield insurance proceeds from creditors, lawsuits, and divorce proceedings that could otherwise claim these funds.
Liquidity for Estate
Provide immediate cash to pay estate taxes, debts, and expenses without forcing the sale of family assets or businesses.
Generation Skipping
Pass wealth to multiple generations while minimizing transfer taxes through dynasty trust provisions.
Controlled Distribution
Set specific terms for how and when beneficiaries receive funds, protecting them from poor financial decisions.
Wealth Preservation
Maximize the value passed to heirs by eliminating up to 40% estate tax on life insurance proceeds.
The Tax Savings Are Substantial
Without ILIT
Life Insurance Policy
- Included in taxable estate
- Subject to 40% estate tax
- $800,000 lost to taxes
- Only $1.2M to beneficiaries
With ILIT
Life Insurance Policy
- Excluded from estate
- Zero estate tax
- Full amount preserved
- $2M to beneficiaries
In this example, an ILIT saves your family $800,000 in estate taxes!
Our ILIT Process
Initial Review
We review your life insurance policies, estate value, and family situation to determine if an ILIT is right for you.
Trust Design
Create a customized trust structure that meets your specific needs and maximizes tax benefits.
Document Drafting
Prepare comprehensive trust documents that comply with all IRS requirements and state laws.
Policy Transfer
Guide you through transferring existing policies or purchasing new ones through the trust.
Ongoing Administration
Provide guidance on Crummey notices, premium payments, and trust administration requirements.
Protect Your Life Insurance Benefits Today
Don't let estate taxes diminish what you leave behind
Book An AppointmentDraft your Trust over the phone with an Attorney:
(818) 291-6217Is An Irrevocable Life Insurance Trust Right For You?
Related Estate Planning Services
Explore our comprehensive estate planning services to protect your family and legacy.