Estate Tax · Life Insurance · Tax-Free Transfer
Irrevocable Life
Insurance Trust
Your life insurance belongs in a trust, not your estate. The death benefit your family receives should be tax-free.
The Estate Tax Problem
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Policy in Your Name
Included in your estate. Subject to up to 40% federal estate tax.
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Policy in an ILIT
Outside your estate entirely. Passes tax-free to beneficiaries.
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No Planning
Your family may wait months and pay taxes before receiving any funds.
The Tax Problem
Why Life Insurance Needs a Trust
Without an ILIT
Policy in your name → included in your taxable estate
Estates over $13.6M (2024 federal exemption) face up to 40% estate tax. A $2M policy could cost your family $800,000 in estate taxes.
With an ILIT
Policy owned by the ILIT → outside your estate entirely
The death benefit passes to your beneficiaries completely tax-free. The full $2M goes to your family — no estate tax, no income tax, no delay.
Crummey Powers
How Premium Payments Stay Tax-Free
Each year, you gift money to the ILIT to pay premiums. Beneficiaries receive a Crummey notice — a right to withdraw their share within 30 days. They won't. But this formality preserves the annual gift tax exclusion, making each premium payment a tax-free gift.
Crummey notice templates are included in your package. Send one per beneficiary, per year, for each contribution. Your maintenance guide explains the exact process.
Complete Package
10 Documents. Complete Protection.
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ILIT Agreement
The core irrevocable trust document. Owns the life insurance policy outside your estate.
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Crummey Notice Templates
Annual notices that preserve the annual gift tax exclusion for premium payments.
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Trustee Powers & Acceptance
Defines trustee authority and documents formal acceptance of the fiduciary role.
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Certificate of Trust
Provided to the insurance company and financial institutions as proof of trust existence.
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Policy Ownership Designation
Changes the policy owner from you to the ILIT — the critical transfer document.
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Policy Assignment Form
For transferring an existing policy into the ILIT (subject to 3-year rule).
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Investment Policy Statement
Documents the trustee's investment approach for any trust assets beyond the policy.
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Annual Accounting Template
Keeps the ILIT compliant and properly documented each year.
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Distribution Instructions
Directs how death benefit proceeds are distributed to beneficiaries.
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Maintenance Guide
Year-by-year checklist of everything needed to keep the ILIT valid and protected.
How It Works
Three Steps to Tax-Free
01
Complete intake (10 min)
Identify your beneficiaries, trustee, and the life insurance policy to be held.
02
Execute the ILIT documents
Sign before a notary. Your independent trustee also signs their acceptance.
03
Transfer the policy
Assign ownership to the ILIT. Notify beneficiaries with Crummey notices for each premium payment.
Simple Pricing
$297
Irrevocable Life Insurance Trust — One-time payment
- ✓Complete 10-document ILIT package
- ✓Crummey notice templates for every year
- ✓Policy Assignment Form for existing policies
- ✓Annual maintenance guide included
- ✓One-time payment — no subscription
Templates for informational purposes only. Not legal advice. Consult an attorney.
FAQ