life insurance trust
A trust set up to own a life insurance policy, so that the policy proceeds arent subject to estate tax when the original policy owner dies. Life insurance trusts are usually irrevocable.
Category: Wills, Trusts & Estates → Estate Tax

Nolo’s Plain-English Law Dictionary. . 2009.

Look at other dictionaries:

  • Life insurance trust — A life insurance trust is a trust that is set up for the purpose of owning a life insurance policy. The idea is that if it is an ILIT, an irrevocable life insurance trust, that the trust itself is the policy holder and owner, the payer is the… …   Wikipedia

  • irrevocable life insurance trust — (ILIT) See: life insurance trust Category: Wills, Trusts & Estates → Estate Tax Nolo’s Plain English Law Dictionary. Gerald N. Hill, Kathleen Thompson Hill. 2009 …   Law dictionary

  • unfunded life insurance trust — noun : a life insurance trust under which the insured agrees to pay the premiums on the subject policies during his lifetime …   Useful english dictionary

  • Insurance Trust — An irrevocable trust set up with a life insurance policy as the asset, allowing the grantor of the policy to exempt asset away from his or her taxable estate. Once the life insurance policy is placed in the trust, the insured person no longer… …   Investment dictionary

  • insurance trust — See life insurance trust …   Ballentine's law dictionary

  • Trust-Owned Life Insurance - TOLI — Life insurance that resides inside a trust. Trust owned life insurance is used by many high net worth individuals as the cornerstone of their estate plan. It enables the trust to provide for survivors, cover estate tax liability planning, balance …   Investment dictionary

  • Life insurance — The foundation of life insurance is the recognition of the value of a human life and the possibility of indemnification for the loss of that value. F. C. Oviatt, Economic place of insurance and its relation to society[1] Life insurance is a… …   Wikipedia

  • insurance trust — noun : an agreement providing for the receipt and distribution of life insurance proceeds by a trustee …   Useful english dictionary

  • Variable universal life insurance — (often shortened to VUL) is a type of life insurance that builds a cash value. In a VUL, the cash value can be invested in a wide variety of separate accounts, similar to mutual funds, and the choice of which of the available separate accounts to …   Wikipedia

  • Massachusetts Mutual Life Insurance Company — MassMutual Type Mutual company Industry Financial Services Founded Springfield, Massachusetts, USA (1851) Headquarters …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”