Irrevocable Life Insurance Trust To Secure Support Arrangements

As part of divorce arrangements, life insurance may be required in order to guarantee the support agreements for dependents or the former spouse. Due to potential tax liabilities it may be advisable to use an irrevocable life insurance trust that is fully funded in order to ensure that the funds go to intended beneficiaries and avoid potential estate tax consequences. This article offers some interesting tips on creating and using insurance trust and when they may be appropriate.

See Kira Masteller & Anthony Storm, Benefits of an Irrevocable Life Insurance Trust as Security for Support, JDSupra, May 8, 2015.

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