Expert: Irrevocable life insurance trusts guard heirs from tax hit

12/2/2012 | Wall Street Journal, The

Assigning ownership of a life insurance policy to an irrevocable life insurance trust shields the proceeds from estate taxes by removing the policy from the holder's estate, Dan Beckerman writes. The strategy is effective for a client whose policy is aimed at providing for heirs rather than one who will need to access the policy's cash value, Beckerman writes. The move also is subject to a three-year "look-back period," a time when the policy will revert to the policyholder's name in the event of death, he writes.

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