Meurer & Potter Law Office, Denver, Colorado
An Irrevocable Life Insurance Trust (ILIT) is one of many tools we might recommend for clients of the Meurer & Potter Law Office during the estate planning process. It removes your life insurance policy from your estate, which in turn protects it from taxes, creditors and other liabilities.
As its name suggests, the Irrevocable Life Insurance Trust cannot be changed or dissolved. Once you’ve created the trust and added your life insurance policy to it, the policy cannot be reverted back to your name. What you can do with an ILIT is name beneficiaries and determine when, how and how much they will inherit from the trust. You will also select a trustee to manage the disbursement after you pass.
An Irrevocable Life Insurance Trust offers a number of benefits when it comes to planning your estate and protecting your lifetime of hard work. Here are just a few:
- Removing your policy from your estate reduces your estate tax liability
- The cash value of your life insurance policy will be better protected from creditors
- You will be able to more precisely control who, when and how assets are distributed
- If a beneficiary receives government aid, the trust also protects their benefits
If you need assistance with an Irrevocable Life Insurance Trust, our attorneys at the Meurer & Potter Law Office are here to help.
Call or contact our offices today to schedule your free consultation: 303-991-3544