TITLE

Sorry, SOLI; Good-Bye ILITs?

AUTHOR(S)
Gallo, Jon
PUB. DATE
April 2006
SOURCE
Journal of Financial Planning;Apr2006, Vol. 19 Issue 4, p46
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The article reports on stranger-owned life insurance (SOLI) and irrevocable life insurance trusts (ILIT) that can be financially beneficial. An older client creates an ILIT for the benefit of their family, which is used to acquire the maximum amount of insurance that can be issued on the client's life. A third-party lender loans the ILIT the amount necessary to pay the first two years of premiums, which are paid back if the client dies. The arrangement often functions as free money, but some states are banning ILITs.
ACCESSION #
20836715

 

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