ILITIrrevocable Life Insurance Trust
ILITIndependent Levee Investigation Team (New Orleans)
ILITInstitute on Laser and Information Technologies (Moscow, Russia)
ILITInstitute for Language and Information Technologies (University of Maryland, Baltimore County)
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References in periodicals archive ?
Although there was good intent for setting up these policies within an ILIT, the niece and nephew in this scenario will be the ones who will suffer from a lack of proper monitoring and due diligence along the way - something over which they had no control over.
Removing the life insurance proceeds from the gross estate can be accomplished by either transferring an existing life insurance policy to an ILIT or having the ILIT purchase a new life insurance policy.
To learn the answer to that question, I turned to an insurance advisor with whom I had just completed two life settlement transactions involving trust-owned life insurance (ILIT) policies.
Prior to the transfer, Ron has gifted enough money to the ILIT to purchase the policy.
The same holds true for life insurance owned by an ILIT.
An ILIT provides very powerful estate-protection benefits, and also can protect assets from legal challenge.
If K should die within the three years following her gift of the policy to the ILIT, the premiums will not be brought back into her estate, but the $5 million death benefit will, possibly creating an additional $2 million of federal estate tax (depending on how much of her exemption has been used).
* Trust Structures--A traditional irrevocable life insurance trust (ILIT) is the obvious choice for ownership of the policy when estate and GST tax considerations are at issue.
A taxpayer's face may present a puzzled visage after hearing the attorney explain the transfer tax-driven steps associated with incorporating life insurance into the taxpayer's estate plan by establishing an ILIT. The advised planning can be complicated and burdensome, but may result in the estate tax-free transfer of life insurance proceeds upon the death of taxpayer and the taxpayer's spouse.
The trust, whether set up as an ILIT or a testamentary trust, can be written so that, upon the death of any of the three parents, the death benefit will be paid out immediately and equally to all of the grandchildren.
Last month, while US Secretary of State John Kerry was on a peace-brokering visit to the region, the Civil Administration granted initial approval for construction of 732 new homes in Modiin Ilit, a settlement midway between Jerusalem and Tel Aviv.