Recent changes to the tax laws that went into effect after the passage of the American Taxpayer Relief Act of 2013 have caused many taxpayers to review and modify their existing estate plans. One estate planning tool that many people are wondering what to do with in light of the new laws is the Irrevocable Life Insurance Trust, or ILIT. All estate assets owned by you at the time of your death are potentially taxable. The lifetime exclusion limit allows each taxpayer to exclude assets up to a … [Read more...]
The Irrevocable Life Insurance Trust
With the estate tax sure to make a comeback next year, estate tax planning is once again at the forefront of many peoples’ minds. And in calculating your gross estate for tax purposes, the IRS includes the value of any life insurance policies you own. For people whose life insurance policies drive the value of their gross estate into the taxable realm, an Irrevocable Life Insurance Trust (ILIT)can be an effective estate planning tool. How does it work? You establish an ILIT and name a … [Read more...]
