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What is a Irrevocable Life Insurance Trusts (ILIT)?

April 26, 2017ilit irrevocable Life Insurance trusts

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What is a Irrevocable Life Insurance Trusts (ILIT)?

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An ILIT (Irrevocable Life Insurance Trust) is an estate planning technique, used to ensure that life insurance proceeds will not be subject to federal estate tax. It is used to reduce the size of the taxable estate and to provide a source of tax-free funds that can be used to pay any estate death taxes that are due at the death of the insured.