When To Use Irrevocable Life Insurance Trust? 
An Irrevocable Life Insurance Trust takes the value of the policy out of the estate of the policy owner , and makes the trust the owner of the policy . So you may want to use an ILIT when it is so important to you to protect the value of that policy , that you are willing to turn it over to someone else to control . Some times when this might be appropriate are when your estate goes over the exempted limit for inheritance or estate taxes when the life insurance proceeds are added into the value of your estate , or if you want to protect your policy from paying nursing home costs -LRB- but the ILIT would have to be set up years ahead of that event -RRB- . 