Irrevocable life insurance trusts (ILIT) allow individuals to ensure the benefits from a life insurance policy can avoid estate taxes and follow the interests of insured. ILITs must be irrevocable, meaning the insured cannot change or undue the trust after its creation. This allows the premiums from the life insurance policy to avoid estate taxes. If the policy were not created under an ILIT, any insurance benefits plus other assets of the insured above the applicable exclusion amount could t...
