Contact Us
Subscribe to this blog via RSS
Join us on LinkedInCategories
- Compliance
- Disaster relief
- Income Tax
- Main Street Lending Program
- remote work
- Americans with Disabilities Act ("ADA")
- Web Content Accessibility Guidelines
- Economic Injury Disaster Loan (EIDL)
- Payroll Protection Program (PPP)
- CARES Act
- Coronavirus Aid, Relief and Economic Security Act
- COVID-19
- Small Business Administration (SBA)
- Liability Waivers
- Miller, as Next Friend of her Minor Child, E.M. v. House of Boom Kentucky, LLC
- Intangible Assets
- Taxation
- Tax consequences
- Community Banks
- Dodd-Frank Act
- SEC Crowdfunding Rules
- Judgment creditors
- Corporate
- Diversity
- ERISA
- Litigation
- Municipal Liability
- Consumer Debts
- Employment Law
- Entrepreneur
- Lenders
- Small Business
- Business Entities
- Equity Development
- Investment
- Mergers and Acquisitions
- Sales and Dissolutions
- Business Formation and Planning
- Closely Held Businesses
- Corporate and Business Tax
- Uncategorized
Showing 1 post tagged ILIT.
What is an Irrevocable Life Insurance Trust?
Life insurance is an important estate planning tool; however, life insurance proceeds can be quickly diminished by taxation. This is due to the fact that a policy's face value is often included in a decedent's taxable estate. For instance, if you own a life insurance policy with a face value of $2 million dollars and you have other assets valued at $4 million dollars, then at the time of your death your estate would be valued at $6 million dollars. Your heirs would be exposed to estate tax liability on the amount exceeding $5.25 million dollars, the current estate tax exemption, (which is always subject to change). Notwithstanding these facts, proper planning can protect life insurance proceeds; one way to minimize the threat is to create an irrevocable life insurance trust ("ILIT"). More >
