Irrevocable life insurance trusts are a popular estate planning tool that can give you some peace of mind that you have thought ahead about the future. When used properly, these can function to pass on wealth to future generations but failing to take the appropriate planning steps at the outset could lead to numerous problems and could risk the validity of the ILIT itself.
One of the most important things you need to do is to open the trust bank account. A trustee is responsible for opening such an account. One of the most commonly recommended accounts for this purpose is a non-interest bearing account.
If the life insurance trust will be funded with cash, the funds for that premium needs to be deposited into the bank account for the trust and then notices must be sent by the trustee to the beneficiaries. Life insurance trusts will be used to purchase insurance policies on the insured grantor.
The trust must remain as the owner as well a step beneficiary of the policy for the purpose of minimizing estate taxes. As you can see, these issues can be very complicated but an irrevocable life insurance trust can be a very valuable tool when you’ve identified the right attorney to assist you with the process. Do not hesitate to find a Georgia estate planning attorney who can help you.