Used primarily for estate creation, estate preservation, and estate conservation. Basically, a irrevocable trust is drafted (meaning drafted, designed, and created by a licensed JD professional aka a lawyer and/or attorney) to hold a LARGE life insurance policy on the insured (usually a parent(s), or the spouses parent(s), and upon materialization of the death certificate, the ILIT receives the death benefit insurance proceeds tax free!!! Yes, that's right, tax free! Most the time insurance proceeds are tax free, but there's the exemption limit, so even if the death benefit is WELL OVER the current exemption limit, the entire thing is passed tax free to the trust. The trust itself then has beneficiaries who receive the proceeds in accordance with the trusts design and instructions.
Irrevocable Life Insurance Trust , ILIT --- Basically, a child (grown up in this example) decides he'd/she'd like to after college, get a good job, and use his/her income (or some of it) to purchase a LARGE life insurance policy on his/her parents, and place it in a Irrevocable Life Insurance Trust, ILIT. Then upon materialization of the death certificate, the child is then passed tax free TONS of dinero! Then the child can take it easy, retire, and live off of e.g investments of any kind, perhaps treasury inflation protected securities.
by Andrew G. Bernhardt October 18, 2008
Get the [Irrevocable Life Insurance Trust] , [ILIT]mug. by Γαπδθμ Λφπ Δдялειг April 3, 2021
Get the 1-Up Mushroom Car Insurancemug. 1. see mr goodwrench
by grandmaster megazord August 28, 2004
Get the selling your neighbor volcano insurancemug. by quibblee May 4, 2021
Get the how to commit insurance fraudmug. A phrase you should promptly say for comedic effect in any setting where someone is seeking feedback on something but there is a pregnant pause...
Presenter: So, does anyone have any thoughts on this planned organizational change?
...tic ...tic ...tic ...tic
"I just saved a bunch of money on my car insurance by switching to Geico"
laughter ensues, pressure is relieved, feedback session is over and everyone can get the hell out of there...
Or Icy stare from management, you are summarily fired a few weeks later for some drummed up offense...
...tic ...tic ...tic ...tic
"I just saved a bunch of money on my car insurance by switching to Geico"
laughter ensues, pressure is relieved, feedback session is over and everyone can get the hell out of there...
Or Icy stare from management, you are summarily fired a few weeks later for some drummed up offense...
by HalLloyd July 29, 2021
Get the I just saved a bunch of money on my car insurance by switching to Geicomug. Stop wasting time, Set up a meeting with Jesse Vargas to protect your family with life insurance and securities investments.
by Jay.Vee.Zee November 23, 2021
Get the Set up a meeting with Jesse Vargas to protect your family with life insurance and securities investments.mug. by Eboi 6776562 January 18, 2017
Get the Word insurancemug.