Is an Irrevocable Life Insurance Trust Right for You?

An Irrevocable Life Insurance Trust can reduce estate taxes and protect heirs, but its rigidity and complexity mean it isn’t right for everyone.
Is an Irrevocable Life Insurance Trust Right for You?
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An irrevocable life insurance trust (ILIT) can allow affluent individuals to pass on wealth to heirs while keeping it outside of their taxable estate. This could help them reduce or avoid the estate tax upon death, which can be as high as 40 percent.

It also can help you pass over assets to individuals with special needs without affecting their eligibility for government programs like Medicaid or Social Security Disability Income (SSDI).

Javier Simon
Javier Simon
Author
Javier Simon is a freelance personal finance writer for The Epoch Times. He specializes in retirement planning, investing, taxes, fintech, financial products and more. His work has been featured by major publications including Fox Business, The Motley Fool, NerdWallet, and Money Magazine.