Definitions for "Life Insurance Trust"
A trust set up to buy life insurance coverage or to become the owner of an existing policy. When a policy is owned by a trust, the death benefit is not counted as part of the insured person's estate for estate-tax purposes.
A trust that uses the proceeds of decedent's life insurance policy as its principal.
A trust established for the purpose of distributing life insurance proceeds and, in many cases, to remove those proceeds from the insureds' estate, thereby reducing estate taxes.
Keywords:  complicated, legal, document
a complicated legal document
an effective vehicle that can be set up to avoid these consequences