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)
References in periodicals archive ?
The amount to be transferred to the ILIT will be $37,310.
That's the only way I can think of to make an ILIT not a grantor trust.
Transferring an existing policy into an ILIT can shield a death benefit from estate taxes and generation-skipping transfer taxes.
Tax advisers are challenged to find the best way to use gift tax exemptions, and a combination of a FLP, GRAT and an ILIT can offer significant leverage.
The ILIT, in a later year, purchases the policy from the PSP for the policy cash surrender value of $500,000.
Life insurance can be an effective funding vehicle inside the ILIT.
Also enjoying heightened interest is the private split-dollar plan: a technique wherein an insured (or spouse) and (usually) an ILIT "split" the costs (premiums) and benefits (cash value and death benefit) of owing a permanent life insurance policy.
If these activities seem too daunting, the UP1A allows ILIT trustees to hire an "insurance advisor" (prudent delegatee) to assist with these duties.
Example 1: An ILIT holding a whole life insurance policy receives a $10,000 premium each year, but the CSV at the beginning of year 10 is only $30,000.
Mary and Mark's lawyer drafts the ILIT document and the trustee purchases a life insurance policy on each of their lives.
If the policy transferor were to continue to fund the premiums after the transfer, as is common when the policy is transferred to an ILIT, the subsequent premiums paid by the transferor would be treated as gifts subject to tax, but could reduce the taxable estate.