If you've done any research or reading on the topic of estate planning, you've probably heard the term "life insurance trust" or ILIT for short. Wondering what exactly this type of trust does? Life insurance proceeds are income tax-free, but not estate tax-free. They are includible in your taxable estate for determining federal estate tax. The primary benefit of a life insurance trust is its ability to remove the insurance death benefit from your taxable estate. This means you minimize estate … [Read more...] about What is a Life Insurance Trust?
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