A trust intended primarily to own life insurance. It is almost always an irrevocable trust formed to keep insurance proceeds out of the taxable estate of the insured.
Allows the placement of life insurance policies into a trust without gift tax or estate tax consequences. Unlike a Living Trust, it is irrevocable. The Trust is the owner and beneficiary of the life insurance policies. Very specific administrative procedures must be followed to take advantage of the tax benefit.
An irrevocable trust established to own an insurance policy or policies and thereby prevent them from being included in the insured's estate.