The irrevocable life insurance trust is a trust that is created for the purpose of becoming the owner of your life insurance policy. However, you must live at least three years after the transfer of an existing policy. At death, the life insurance proceeds will not be in your estate. You can name the irrevocable life insurance trust as the beneficiary of the policy. When you pass away, the life insurance proceeds will be paid according to the provisions of the irrevocable life insurance trust (i.e. to your spouse, children, etc.)