St. Petersburg Irrevocable Life Insurance Trust Lawyer
An Irrevocable Life Insurance Trust (ILIT) is a specialized estate planning tool that provides tax-efficient wealth transfer and asset protection. If you want to safeguard your life insurance benefits for your loved ones while reducing potential estate tax liability, an ILIT might be the ideal solution. At Drude Tomori Law, we help clients create and manage ILITs as part of a comprehensive estate plan tailored to their unique needs and goals. Contact our office today to visit with a skilled and experienced St. Petersburg irrevocable life insurance trust lawyer.
What Is an Irrevocable Life Insurance Trust?
An ILIT is a type of trust specifically designed to hold and manage life insurance policies. By transferring ownership of your life insurance policy to an ILIT, the policy’s proceeds are excluded from your taxable estate, ensuring that your beneficiaries receive the full benefit without unnecessary tax burdens.
Since ILITs are irrevocable, they provide strong asset protection and ensure the trust terms cannot be easily altered, making them an effective and reliable estate planning strategy.
Benefits of an ILIT
An ILIT offers numerous advantages for individuals and families seeking to maximize the value of their life insurance policies:
- Estate Tax Reduction: Life insurance proceeds held in an ILIT are not included in your estate, reducing potential estate taxes.
- Asset Protection: The trust provides protection from creditors and legal claims against your estate or beneficiaries.
- Control Over Distribution: You can specify how and when the life insurance proceeds are distributed, ensuring they go where you want them to go.
- Liquidity for Estate Taxes: The trust can provide immediate liquidity to pay estate taxes or other expenses, preventing the forced sale of other estate assets.
How Does an ILIT Work?
Setting up an ILIT involves careful planning and adherence to legal requirements. The process typically includes:
- Trust Creation: The ILIT is drafted to meet your specific objectives and comply with applicable laws.
- Transfer of Ownership: The life insurance policy is transferred to the trust, removing it from your estate.
- Premium Payments: The grantor funds the trust, often through annual contributions, which the trustee uses to pay the policy premiums.
- Distribution of Proceeds: Upon the insured’s passing, the trust distributes the proceeds to the named beneficiaries according to the trust terms.
Because the trust is irrevocable, changes to its terms are limited, making it critical to work with experienced legal counsel during the drafting process.
Why Choose Drude Tomori Law for ILITs in St. Petersburg?
At Drude Tomori Law, we understand that each client’s needs are unique. Our team will guide you through the ILIT creation process, ensuring the trust is structured to align with your goals. We offer personalized advice to determine whether an ILIT is right for you. We draft and implement the trust to maximize tax efficiency while coordinating with your financial advisor and insurance provider to ensure seamless execution. Clients also count on us for ongoing support to manage and administer the trust. We take pride in creating estate plans that stand the test of time, offering flexibility to adapt to changing laws and circumstances.
Take the Next Step with a St. Petersburg ILIT Lawyer at Drude Tomori Law
If you’re considering an Irrevocable Life Insurance Trust to protect your assets and provide for your loved ones, Drude Tomori Law is here to help. We provide personalized guidance and skilled representation to ensure your ILIT is designed to meet your unique needs.
Call us at 727-300-8900 or contact us online to schedule a consultation. Let us help you take control of your estate planning and secure your family’s future.
