Irrevocable Life Insurance Trust (ILIT)
What Bay Point Does
- Determines if creating an ILIT is advisable.
- Recommends the amount(s) and type(s) of policies to purchase in the ILIT and determines if existing insurance policies should be transferred to the ILIT.
- Recommends an attorney to create and administer the trust.
- Works with the insurance agent(s) to design the needed policies and transfer ownership of existing insurance, if necessary.
What Your Attorney Does
- Creates the trust document.
- Establishes an escrow account to hold premium dollars.
- Sends reminders to you to make deposits to the escrow account to cover premium payments.
- Sends out Crummey letters to all of the beneficiaries for their signatures.
- Makes the premium payments to the insurance company from the escrow account.
What You Do
- Make the escrow deposits to cover your insurance premiums.