Transferring Life Insurance To and From ILITs

Gallo, Jon
August 2006
Journal of Financial Planning;Aug2006, Vol. 19 Issue 8, p38
Academic Journal
The article focuses on the process of transferring life insurance to and from irrevocable life insurance trusts (ILITs), because those insured by ILIT frequently request changes of trustees. Internal Revenue Code Section 2035(a) is explained, as well as a relevant decision regarding trust transfer by the fifth circuit court of appeals. The ILIT implications of the Tax Reform Act of 1981 are discussed, as well as the benefits and costs of transferring life insurance assets into and from ILITs.


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