One way around this risk is to have the trust buy a policy on the insured's life. The beneficiaries can spend some of the trust funds. Whether you transfer a policy into a life insurance trust or have the trust buy a policy, you'll need to gift to the trust sufficient funds to pay the premiums. This provision allows beneficiaries the opportunity to withdraw their share of the gift, typically within a certain time, such as 30 days. Obviously, if they do withdraw funds they've defeated the purpose of the trust.
Trusts cost money.
In some cases, this may be appropriate. However, the beneficiaries may not be mature or responsible enough to use the money to pay estate taxes or as otherwise intended by the insured. Also, divorce, bankruptcy, or a lawsuit against a beneficiary may allow access to the policy's cash value or the proceeds by the ex-spouse or creditors. An ILIT would prevent this. Separate policies also are more complicated if several beneficiaries are involved.