How else are ILITS beneficial?

Just as with any other types of trusts, the ILIT can dictate when trust assets are distributed. For example, if the insured leaves behind minor aged children, or beneficiaries who may not have fundamental financial responsibility, the trustee of the trust can dictate, based upon trust language or discretion depending on the trust wording, when and how the policy proceeds are distributed. Additionally, if the beneficiary of the insurance policy receives government entitlements, receiving a lump sum payment from an insurance policy could cause the loss of the entitlement. By having the trust own the policy and the proceeds therefrom, the beneficiary receiving the entitlement never takes ownership and the asset is not attributed to the beneficiary for entitlement calculation purposes.

Overall, there are a multitude of issues with regards to Wills, Trusts and Advanced Directives, and to make sure that you are doing everything you can during your lifetime to prepare for what will happen after you have passed, contact a Spring ILITS lawyer at Garg & Associates today to get this process started and to protect the future of those you love.

Please contact our office to see how we can assist you. Learn more about our Areas of Practice.