Life insurance is one of the best estate planning tools available.
However, if you're not careful, it can also trigger a massive federal estate tax problem. The result could cost up to 55 cents of every dollar your beneficiaries had expected to receive from your life insurance products. The solution for many people is an Irrevocable Life Insurance Trust. An ILIT can help eliminate the potential estate tax problem and ensure that 100 cents of every life insurance dollar goes to your heirs, not to Uncle Sam. Your attorney must draft the agreement for you.