Can I add a new life insurance policy to an existing ILIT (Irrevocable Life Insurance Trust)?
I am the original Trustee of an ILIT that was created ten years ago. My parents are the original Grantors and the ILIT currently owns four policies with my father as the insured and one “second to die” policy with both my parents as insureds. Three years ago, my parents divorced. I know the ILIT survives the divorce, but I was wondering if I, as Trustee, should purchase a new life insurance policy for my mother in the name of the existing ILIT, which grants the Trustee broad powers to “add to the trust estate at any time.” I’d rather not write a new ILIT, open a new bank account, etc. if such steps are not necessary and the original ILIT will suffice. Thank you!
