Flexible ILITs Still Feasible

Irrevocable life insurance trusts (ILITs) are still flexible enough to be effective planning devices. It is good for clients to include numerous authority positions in their trusts to increase flexibility, but it is not always easy to explain these different roles to clients. Graphical or color-coded representations are helpful. If ILITs are taxed as a grantor trust, then that also opens up various possibilities for grantors.

See Laura Pyne, ILITs: Flexibility is the Answer, WealthCounsel, Mar. 8, 2011.

Special thanks to Jim Hillhouse (WealthCounsel) for bringing this article to my attention.