[irrevocable life insurance trust] , [ilit]

[Justin Bieber]

Used primarily for estate creation, estate preservation, and estate conservation. Basically, a [irrevocable] trust is drafted (meaning drafted, designed, and created by a licensed JD professional aka a lawyer and/or attorney) to hold a LARGE [life insurance] policy on the insured (usually a parent(s), or the spouses parent(s), and upon materialization of the death certificate, the ILIT receives the death benefit insurance proceeds [tax free]!!! Yes, thats right, tax free! Most the time insurance proceeds are tax free, but theres the exemption limit, so even if the death benefit is WELL OVER the current exemption limit, the entire thing is passed tax free to the trust. The trust itself then has beneficiaries who receive the proceeds in accordance with the trusts design and instructions.