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Palm Beach County Estate & Probate Attorneys / Irrevocable Life Insurance Trusts

Palm Beach Estate Planning Attorneys Provide Dependable Counsel on Irrevocable Life Insurance Trusts

Providing peace of mind while responsibly planning for the future

In so many ways, our time on this earth is short and unpredictable. For any number of unforeseeable reasons, your life can change or end in an instant. Therefore, many individuals make the prudent decision to purchase life insurance. This decision reflects a person’s mature attitude in dealing with the difficult subject of untimely death or disability. But how do you know the beneficiaries of a life insurance policy will treat the proceeds with the same levels of maturity and foresight? That is the unknown variable. Major life events, like death, often have a profound impact on the mental state and decisions of loved ones. Therefore, it is well advised to set up an Irrevocable Life Insurance Trust (ILIT). The insightful, innovative Palm Beach trust attorneys at Kitroser Lewis & Mighdoll work closely with you and your family to establish the right ILIT for your unique situation.

Why create an ILIT?

Many people might wonder why an ILIT is necessary? Why not simply purchase a life insurance policy? In theory, your life insurance policy is already designed to address your loved one’s projected financial needs. But there are a number of reasons why an ILIT is recommended, such as:

  • Bridging the Distribution Gap. First and foremost, there is a major difference between projecting a future financial, need and making sure those financial needs are actually met. In general, trusts allow you to impose conditions on assets, even if you are no longer present. Like a will, a life insurance policy simply directs money to a fixed point or points. A trust actually oversees how that money is governed and distributed on its way to those points. Therefore, an ILIT allows you to ensure that your beneficiaries actually use the proceeds for things like education, paying-off creditors, or other intended uses.

  • Supervision and Imposing Conditions. When you pass, and the proceeds are paid out to your ILIT, a trustee of your choosing will be in control of the distribution of funds in accordance with the express terms of the ILIT documentation. By filling out this documentation ahead of time, you will continue to exercise control over these funds. This will allow you to impose specific conditions regarding how the ILIC funds are used. Additionally, the trustee is accountable to the ILIT beneficiaries under the law.

  • Irrevocability. Irrevocable trusts are not changeable once established. This creates a solid basis for your estate planning. If you are infirmed or suffer from incapacity prior to your passing, there is no way for potential beneficiaries of the ILIT to take advantage of your situation and revoke the ILIT and its terms.

  • Avoiding Probate. Because the ILIT holds the life insurance policy and monetary benefits in trust, and provides for distribution of these assets by operation of law, the funds in the ILIT will not become part of your probate estate or gross estate. In addition, the ILIT can be structured to not become part of your surviving spouse’s probate estate or gross estate.

Contact reputable Palm Beach trust and estate planning attorneys today for a free consultation

You want to take steps to provide peace of mind for you and your loved ones. Perhaps an irrevocable life insurance trust is right for you. When you need assistance creating an ILIT or have any estate planning questions, the knowledgeable Palm Beach trust attorneys at Kitroser Lewis & Mighdoll possess the skills and answers you need. Contact us today to schedule a free consultation at 561-721-0600 or contact us online. We serve Palm Beach, North Palm Beach, Palm Beach Gardens, West Palm Beach, Jupiter, Juno Beach, Singer Island, Tequesta, Hobe Sound, Lake Park, and all of South Florida.