42K views · 4.1K reactions | Revocable trusts are used primarily for...
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A Revocable Trust doesn’t own your life insurance policy, it’s just the beneficiary. That means when you pass away, the policy proceeds are simply paid into the trust. An ILIT, on the other hand, actually owns the policy as the policyholder. That one detail makes all the difference. Big policy? Live in MA, NY, or WA? → You may need an ILIT. Avoid state death tax protect your legacy from creditors → You may need an ILIT. The way you fund an ILIT is through gifting, you, as the grantor, make a gif
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