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LSDefine

Simple English definitions for legal terms

life insurance trust

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A quick definition of life insurance trust:

A life insurance trust is a special type of trust that helps people protect the benefits from a life insurance policy from estate taxes. It is a way to make sure that the money from the policy goes to the people the insured person wants it to go to, without being taxed too much. Once the trust is created, it cannot be changed, which means that the benefits from the policy are safe from taxes. The trust also allows the insured person to choose how the money is managed and distributed to the beneficiaries, so that it is used in the best way possible.

A more thorough explanation:

A life insurance trust is a type of trust that helps individuals ensure that the benefits from a life insurance policy can avoid estate taxes and be distributed according to their wishes. This type of trust is also known as an irrevocable life insurance trust (ILIT) because it cannot be changed or undone after it is created.

Without a life insurance trust, the benefits from a life insurance policy could be subject to both state and federal estate taxes if they exceed the applicable exclusion amount. By creating a life insurance trust, the insured can avoid these taxes and ensure that their beneficiaries receive the full benefits of the policy.

In addition to tax benefits, a life insurance trust allows the insured to choose a manager of assets and determine how the beneficiaries receive them. For example, the trustee can be instructed to prevent beneficiaries from wasting the benefits or to distribute the assets among beneficiaries based on their needs.

John wants to ensure that his wife and children receive the full benefits of his life insurance policy without having to pay estate taxes. He creates an irrevocable life insurance trust and names his wife as the primary beneficiary and his children as secondary beneficiaries. He also appoints a trustee to manage the assets and distribute them according to his wishes.

By creating a life insurance trust, John can ensure that his family receives the full benefits of his policy without having to worry about estate taxes. He can also rest assured that the assets will be managed and distributed according to his wishes.

life insurance avails | life tenant

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TGM
18:41
not sure if I should email them to say that, or just hold off on sending it and not give an excuse
18:41
I think I just wouldn’t reach out and if they ask for them then say that
Dkk
18:41
@tgm Yeah sounds good, say that if they ask
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hey yall
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im premed idk why im here
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we’re like cool and sexy and fun I get it
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true i love ur user
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thank you my little crow friend
Dkk
18:50
Med law easy done
medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
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what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
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