Life Insurance Trusts Lawyer Bloomington, IL
Life Insurance Trusts Lawyer Bloomington, IL 
When you are creating an Irrevocable Life Insurance Trust (ILIT), it may be most helpful to work with a life insurance trusts lawyer Bloomington, IL offers from Pioletti Pioletti & Nichols. When creating this type of trust, you can enable your life insurance to pass outside of your taxable estate. An ILIT is not something that can be revoked or amended and can contain one or more life insurance policies. After the insured person creates the ILIT and passes away, a named trustee will then begin to manage the policy. If you have any questions about this or would like to learn more about the benefits, please reach out to an attorney from Pioletti Pioletti & Nichols. We’re here to help ensure you do not miss out on certain benefits when it comes to your ILIT.
What is one of the benefits of having an ILIT?
Although there are many benefits to creating this type of trust, you may not realize exactly how taxes work when it comes to estate planning. It’s true that, on average, when life insurance proceeds move to the beneficiary of the life insurance, those proceeds will not carry income tax. That said, life insurance is almost always a part of the policy owner’s gross estate which means it may be subject to other taxes, like state and federal estate taxes. By creating an ILIT, the proceeds would not be a part of the insured’s estate. Our estate planning lawyer Bloomington, IL relies on knows that this is a good way to avoid those pesky taxes.
Can I name one of the beneficiaries as the trustee to my ILIT?
There are no laws that state you cannot have a trustee be a beneficiary. That said, just because it is not illegal does not mean it is a good idea. Especially when you name other people as beneficiaries in this trust, it is possible that a conflict could come up that delays certain processes.
Who can you turn to?
Estate planning and life insurance trusts can be extremely difficult because of the nuances of the law and trying to avoid taxes. We understand you want to make sure your beneficiaries get the most out of the ILIT. If you are interested in speaking with us about creating this type of plan and seeing the benefits it can offer to your named beneficiaries, give us a call. Our Bloomington, Illinois life insurance trusts lawyer is waiting to take your call.
