An ILIT can be a wealth preserver for your family

Description

Abstract: Life insurance is often an integral part of an estate plan. By acquiring life insurance coverage, a person can provide liquidity when his or her family might need it the most. Of course, a person must account for taxes. For many families, creating an irrevocable life insurance trust (ILIT) to hold a life insurance policy is a common solution. This article explains how an ILIT works. A brief sidebar details the “three-year rule.”