Irrevocable Life Insurance Lawyer
The biggest advantage of creating an irrevocable living trust (ILIT) is the amount of taxes you will save, which would otherwise be applied to your estate. This type of trust can never be revoked, even if you change your mind in the future.
The irrevocable life insurance trust is specifically designed to hold your life insurance policies, so they are not eligible for estate taxes. Without this type of trust, your policy may be eligible for federal estate taxes, along with local California taxes.
An irrevocable living trust prevents you from acting as the trustee. By removing yourself as designated trustee, you will not be legally bound as an owner to pay certain taxes on the estate. However, your spouse or children can act as trustee, in your place.
By avoiding these types of taxes on your life insurance policies, you will be creating a substantial financial asset that your beneficiaries can enjoy. They can use the money to pay off your federal estate taxes, while enjoying the tax benefits that this kind of trust provides.
To get started on creating an irrevocable living trust, contact Citadel Law Corporation at (800) 662-0882 today. One of our experienced estate-planning attorneys will be able to assist you in setting up a consultation.