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.
A trust established to own insurance policies in order to prevent them from being included in an estate.
An irrevocable trust established to own your insurance policies and thereby prevent them from being included in your estate.
A trust composed entirely or partially of life insurance contracts.
See Irrevocable Life Insurance Trust.
A common form of trust, created during the lifetime of the person who creates the trust, that is funded by insurance policies on the life of the trust's creator or by the proceeds of such policies. | Back
An insurance trust is created to hold one or more life insurance policies or proceeds, and may hold other assets as well. The trust is the owner of the policy and the beneficiary of the proceeds. Usually, life insurance trusts are established to avoid the imposition of estate taxes on the proceeds; therefore, most life insurance trusts are irrevocable. The creator of the trust may purchase new policies or transfer existing policies to the trust, or the trustee may be permitted to purchase the policies (but each of these alternatives results in different estate tax consequences).
An irrevocable trust established to own life insurance on a person, so designed as to exclude the proceeds of the policy - the death benefit - from the insured person's taxable estate at death.
A trust to which the grantor transfers his or her life insurance policies.