TITLE

Transferring Life Insurance To and From ILITs

AUTHOR(S)
Gallo, Jon
PUB. DATE
August 2006
SOURCE
Journal of Financial Planning;Aug2006, Vol. 19 Issue 8, p38
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
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.
ACCESSION #
22065618

 

Related Articles

  • SURVIVORSHIP LIFE INSURANCE MAY COST, NOT SAVE A FAMILY MONEY. Geber, Benjamin A. // Journal of Personal Finance;2008, Vol. 7 Issue 2, p44 

    For high net worth clients, survivorship life insurance is often recommended as an estate planning tool. This article challenges that assumption by offering several other scenarios supported by alternative earnings and cost projections. Survivorship life actually may not be the least expensive...

  • Are ILITs Still Viable? Scroggin, John // Advisor Today;Feb2005, Vol. 100 Issue 2, p20 

    The article focuses on Irrevocable Life Insurance Trust (ILIT). The probate process can be time-consuming. However, many clients want to make sure that funds are quickly available to family members in the event of their death. By placing the assets in an ILIT, the funds can become immediately...

  • Life Insurance Options, and What Lies in the Shadows. Katt, Peter C. // Journal of Financial Planning;Nov2011, Vol. 24 Issue 11, p32 

    The article presents the case of seniors Doug and Helen, who decided to purchase a life insurance worth 50 million dollars. It mentions that both of them have encountered several problems including the ability and experience of Marty, college roommate of Doug, to implement the program. It notes...

  • Spousal Lifetime Access Trusts: Planning Opportunities Using Second-to-Die Life Insurance Policies. Clark, Britney Zollinger // Journal of Financial Service Professionals;Nov2010, Vol. 64 Issue 6, p50 

    Irrevocable life insurance trusts (ILITs) have been a significant planning tool for clients with taxable estates for many years. While the term "irrevocable" lends itself to an image of something that is rigid and final, with proper planning a great deal of flexibility can be incorporated into...

  • The Incredible Sinking ILIT Policy. Kohler, Barry L. // CPA Wealth Provider;Apr2007, p22 

    The article offers steps on how to reduce liability about irrevocable life insurance trust (ILIT). The clients awareness on the ILIT policy insurance is important to protect their interest. The insurance owner or the trustee need to review the policies periodically, especially permanent...

  • Irrevocable Life Insurance Trusts. Sobczak, Carol A.; Robbins, Lawrence A. // Franchising World;Sep/Oct96, Vol. 28 Issue 5, p46 

    Discusses various aspects of irrevocable life insurance trust. How the trust works; Tax savings; Disadvantages; Persons who can act as trustees.

  • Irrevocable Trusts and Life Insurance: They Stand the Test of Time, Part II. Duff, Richard W. // Journal of Financial Planning;Aug1999, Vol. 12 Issue 7, p34 

    Part II. Provides information on irrevocable life insurance trusts (ILIT). Benefits of ILIT; Details on the creative legal drafting for the beneficiaries; Importance of planning and ILIT-owned policy on wealth preservation.

  • A Marriage Made in Tax Heaven. BLACKMAN, IRVING L. // Modern Machine Shop;Oct2011, Vol. 84 Issue 5, p38 

    No abstract available.

  • The Pros and Cons of Using ILITs. Scroggin, John // Advisor Today;Apr2005, Vol. 100 Issue 4, p22 

    Discusses the use of irrevocable life insurance trusts in the United States. Preference of client that dispositional decisions are not reflected in public records; Determination of executors' fees; Provision for elective shares claims against the probate estate of a deceased spouse.

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics