How Does An Irrevocable Life Insurance Trust Work? 
Generally a person purchases a single premium life insurance policy with the trust as the irrevocable beneficiary . Irrevocable means that the beneficiary can not be changed . The Trust is usually also the owner of the policy preventing the insured from having access to the cash value . This is an excellent way to prepay a funeral without having to commit to a specific funeral home . These types of trusts are used to help protect assets from Medicaid . This type of trust is a funeral trust . There are other types of irrevocable trusts as well . A good agent familiar with care resource planning can help answer more of your questions and provide guidance on asset conservation in the later years of life when preservation of assets becomes more important than accumulation of assets . 