Tax Facts

229 / What type of trust is an irrevocable life insurance trust (ILIT)?

An irrevocable life insurance trust (ILIT) is a trust funded primarily by life insurance which cannot be modified, amended or revoked without the permission of the beneficiary. It is mechanism used in estate planning in which a grantor effectively removes all of his rights of ownership to the assets of the trust.1

1. https://www.irs.gov/tax-professionals/tax-code-regulations-and-official-guidance.

Tax Facts Premium Tools
Calculators
100+ calculators specifically designed to help you easily assist clients with specific planning situations and calculations.
Practice Guidance
Designed to help you discover new ways for which to build and maintain client relationships.
Concepts Illustrated
Specifically designed to help you easily assist clients with specific planning situations and calculations.
Tax Facts Archives
Access to the entire library of Tax Facts dating back to 2012 allowing you to look up the exact tax figures from prior years.