What Is The Primary Purpose Of An Irrevocable Life Insurance Trust? 
The Primary Purpose of an Irrevocable Life Insurance Trust -LRB- ILIT -RRB- is to own a life insurance policy and distribute the policies proceeds to the ILIT beneficiaries and thus outside estate . The ILIT is set up and dated first . Then the policy is dated after the trust date . The grantor generally gifts the premiums or uses the unified credit to fund the ILIT without taxes on the premiums . Consult with an estate tax attorney before moving forward with any estate planning thats considering an ILIT . 