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Why You Should Look Into Irrevocable Life Insurance Trusts

Life insurance might be one of the most popular financial products that people buy for a variety of reasons. An irrevocable life Insurance (ILIT), is created to gain ownership and control over a term or permanent life insurance policy while the insured is still alive. It allows the policyholder to manage and distribute the proceeds that are paid out upon their death. ILITs can also own second to die life insurance policies, which insure two lives and pay the death benefit only after the second death.

A non-revocable life insurance trust in Half Moon Bay includes several parties: the grantor, trustees, and beneficiaries. The grantor typically creates and funds the policy. Gifts or transfers made to the policy are permanent and transfer the control from the grantor to the trustees. The trustees manage the ILIT and the beneficiaries receive distributions.