What Is An Irrevocable Life Insurance Policy? 
Life insurance is personal property . An irrevocable life insurance trust -LRB- ILIT -RRB- is an artificial entity . It is sometimes in the best interest of planning for a life insurance policy to be owner by a third party or a trust . When an ILIT is set up and dated , the trust of the ILIT applies for the life insurance policy as policy owner . The grantor of the ILIT contributes premiums , generally through annual gifting or using the unified credit . When the death of the insured occurs the proceeds are distributed to the beneficiaries of the ILIT . 