Irrevocable Life Insurance Trusts

Overview

The irrevocable life insurance trust (ILIT) is one of the most widely used estate planning tools. Those who work in the estate planning field-or any professional who wants to extend his or her practice into this arena-should become knowledgeable about ILITs, and how and why they are used.

The purpose of this course is to provide a general understanding of trusts and how they work, with a specific focus on irrevocable life insurance trusts. Along with an exploration of ILITs, the course explains collateral issues that might arise in their creation and operation including a number of important tax-related issues.

Learning Objectives

Upon completion of this course, students should be able to:

  • demonstrate an understanding of the basic nature of trusts and the various ways in which they can be described
  • identify the parties to a trust, as well as their roles and responsibilities
  • outline how to fund an ILIT with a new life insurance policy and describe the kind of life insurance policy that should be used as a funding vehicle
  • recognize the tax issues that arise when funding an ILIT with an existing life insurance policy
  • demonstrate an understanding of the basic estate planning benefits that can be derived from utilizing an ILIT and what must be done to secure them
  • compare the potential advantages and disadvantages of utilizing an ILIT for estate-planning purposes
  • recall how the grantor trust rules, the kiddie tax, the generation-skipping transfer tax, and the rule against perpetuities, among others, may affect an ILIT
  • recognize how an ILIT can be used to achieve various estate-planning goals

Designed For

Life insurance producers, financial planners and advisors, CPAs
WebCE® is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.
Find Courses Now