Insurance Trust

Insurance Trust

Irrevocable Life Insurance Trusts: The benefits of creating an (ILIT) Irrevocable Life Insurance Trust is that, unlike a traditional insurance policy that is part of your estate and subject to tax, the ILIT is separate from your estates. Therefore, the Trust itself is not subject to estate taxes and can be earmarked to pay all or parts of your estate’s tax liability following your death.

There are two ways you can go about to set up an ILIT: (1) you can transfer your existing life insurance policy to an ILIT, or (2) purchase a new policy through the ILIT. It is beneficial to note that an ILIT is best to allow the Trustee to acquire a new policy because transferring an existing policy will trigger a tax rule that if you decease within three years from the date of transfer, your insurance policy will be part of your estate.

For married couples, both spouses can be insured for a lesser costs, and pays benefits only after the second spouse becomes deceased.

생명보험 트러스트

생명보험 트러스트의 가장큰 장점은, 생명보험금이 본인의 자산에 포함되지 않음으로 사망후에는 상속세등의 과세없이 자녀나 본인이 지명해놓은 수혜자가 생명보험금 전액을 물려받을수 있습니다. 혜채가 가능하지 않은(irrevocable) 생명보험 트러스트를 설정해 놓지않고 본인의 이름으로 생명보험을 들어놓은 경우는 생명보험금은 사후에 과세대상이 될 뿐만아니라 사는 동안에도 생명보험의 현가치 (cash value)는 채권자들의 소송대상이 될수도 있습니다. 이미 생명보험이 있는경우에는 생명보험트러스트을 설정해서 옮길수는 있으나, 이 트러스트의 혜택을 누리기위해서는 3년 보류기간이 적용된다.  따라서, 아직 생명보험이 없는경우에는 생명보험트러스트를 설정한후에 생명보험에 가입하는 것이 현명하다.