Sure, there is some extra work involved to set up an Irrevocable Life Insurance Trust (ILIT):
- The attorney fees
- Finding a trustworthy and reliable trustee
- Establishing a bank account for the trust
- Premiums that are paid each year, must be paid out of that trust by the trustee
- The increased Unified Credit Exemption means you need to have a very high net worth to make the trust worthwhile.
But, if you are in the right situation, an ILIT owning your life insurance can be very powerful.Read More