More examples in Legal/Estate Planning
Primary Use and Structure of the Irrevocable Life Insurance Trust and Dynasty Trust Example
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Text in this example:
IRREVOCABLE LIFE INSURANCE TRUST Mom, Dad or
Split Gift Surviving
Spouse Life Insurance
Policy Children DYNASTY TRUST Parents Children, Grandchildren & Great-Grandchildren Survivor's Death Great-Great Grandchildren Annual gifts
to trust Income goes
to surviving
spouse
(optional) Trustee
purchases
policy Proceeds to
trust at death Trust proceeds
replace tax liability
and passes to
heirs tax-free Large annual gifts Income or loans Trust principal Proceeds to trust Life Insurance
Policy Large policy
purchased by trustee PRIMARY USE AND STRUCTURE OF THE
IRREVOCABLE LIFE INSURANCE TRUST
AND DYNASTY TRUST
Split Gift Surviving
Spouse Life Insurance
Policy Children DYNASTY TRUST Parents Children, Grandchildren & Great-Grandchildren Survivor's Death Great-Great Grandchildren Annual gifts
to trust Income goes
to surviving
spouse
(optional) Trustee
purchases
policy Proceeds to
trust at death Trust proceeds
replace tax liability
and passes to
heirs tax-free Large annual gifts Income or loans Trust principal Proceeds to trust Life Insurance
Policy Large policy
purchased by trustee PRIMARY USE AND STRUCTURE OF THE
IRREVOCABLE LIFE INSURANCE TRUST
AND DYNASTY TRUST