IRREVOCABLE LIFE INSURANCE TRUST

An Irrevocable Life Insurance Trust is the exception to the typical problems associated with irrevocable trusts, and, it can provide significant benefits to a family. For example, if properly drafted, the Life Insurance Trust will:

1. Remove the proceeds of life insurance from the taxable estate of the settlor and the settlor's spouse.

2. Provide additional funds for cash distributions to those selected as recipients by the settlor.

3. Facilitate the payment of death taxes which have not been eliminated through the utilization of various other legal tax-avoidance strategies.

4. Be controlled by family members serving as Co-Trustees, but, excluding the Settlor as a Trustee.

5. Allow for future changes in the types of insurance policies owned by the trust.