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Simple English definitions for legal terms

irrevocable life insurance trust (ILIT)

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A quick definition of irrevocable life insurance trust (ILIT):

An irrevocable life insurance trust (ILIT) is a special type of trust that helps people protect the benefits from a life insurance policy from estate taxes. Once the trust is created, the person who created it cannot change it. This means that the premiums from the life insurance policy can avoid estate taxes. If the policy were not created under an ILIT, the insurance benefits plus other assets of the person who passed away could trigger both state and federal estate taxes. ILITs also allow the person who created the trust to choose a manager of assets and how the beneficiaries receive them. This means that the person who passed away can instruct the trustee to do things like prevent the beneficiaries from wasting the benefits or spread the assets among beneficiaries depending upon their needs.

A more thorough explanation:

An irrevocable life insurance trust (ILIT) is a type of trust that allows individuals to ensure that the benefits from a life insurance policy can avoid estate taxes and follow the interests of the insured. The ILIT must be irrevocable, meaning that the insured cannot change or undo the trust after its creation. This allows the premiums from the life insurance policy to avoid estate taxes.

For example, let's say that John has a life insurance policy worth $1 million. If John were to pass away, his beneficiaries would receive the $1 million from the policy. However, if John did not create an ILIT, the $1 million would be included in his estate and could be subject to estate taxes. By creating an ILIT, John can ensure that the $1 million from the policy will not be subject to estate taxes.

ILITs also allow the insured to choose a manager of assets and how the beneficiaries receive them like other trusts. For instance, John can instruct the trustee to prevent the beneficiaries from wasting the benefits or spread the assets among beneficiaries depending upon their needs. This gives John more control over how his assets are distributed after his death.

In summary, an ILIT is a useful tool for individuals who want to ensure that the benefits from a life insurance policy can avoid estate taxes and follow their wishes. By creating an ILIT, individuals can have more control over how their assets are distributed after their death.

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m10
11:58
Nah nah she would not like that. She is conservative.
BulbasaurNoLikeCardio
11:58
Tell her you just got over a cold and if she wants to try and steal your germs its on her but no one likes being sick so hopefully she is chill
m10
11:59
We will see. This is enough feedback. Thank you all.
12:00
tell her you wanna test and see if your immune systems are compatible, that gets the ladies going
m10
12:00
Lol, maybe
babycat
12:00
lmao when you give the republican baddie the ick by masking up
12:01
LOL
Dkk
12:02
Just part of the culture.
BulbasaurNoLikeCardio
12:04
I wish that wearing a mask when sick stuck around as an okay thing like it is in the rest of the world, not all of us have enough sick days to be ditching work.
Dkk
12:04
Unless its like an N95 i dont think it will really do anything
12:04
there's even a mask ban in some places. altho one of my coworkers wears a mask anyway despite customers being rude to her about it
12:05
good morning
12:05
why does umiami ask "Are you applying, or have you applied, to other law schools? If so, please list them."
BulbasaurNoLikeCardio
12:05
One manager came in sick wearing a mask, got roasted and stopped wearing it that day. The entire office has been cycling sickness for two weeks now. It may not be super effective but it may help in slowing the spread during meetings when we have to be so close
12:05
am i the only one who has never gotten my status checker to work on here?
BulbasaurNoLikeCardio
12:06
@ChowieBean: want to see what schools they share an applicant pool with, think it is all data harvesting stuff no a +/- for the applicant
12:06
ok good cuz idk whether i wanna tell them or not
12:06
thanks bulbasaur
12:08
not to be that guy again but berkeley person/applicant id is back and Shiny New Logo
be that guy
EW THE NEW LOGO IS SO UGLY
WTF
12:09
need to send in my berkeley app rawwwww
BulbasaurNoLikeCardio
12:09
@ChowieBean: should be required to tell them, the schools who asked I only told them the schools in their area not all of them.
BulbasaurNoLikeCardio
12:10
*shouldnt be
12:12
@jackfrost11770: if i get a berk A today and they have that logo im withdrawing (/s /s /s /j /j /j)
babycat
12:12
@ChowieBean: me too lol. you applying to public interest scholars program?
12:14
yes def applying public interest
12:16
i was raised like blocks away from umiami
12:16
idk if i wanna go back to florida tho so im applying there as safety/target 💀
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