The benefit to creating an irrevocable life insurance trust is that the person’s life insurance benefits will be taken out of their taxable estate after their death. It does this by making the trust the holder of the policy, rather than the person. The only downfall is that, in order to create this type of trust, the person needs to give up all rights to the life insurance policy. Therefore, it is important to consider all circumstances before going through with creating an irrevocable life insurance trust.


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