Tax Facts

229 / What type of trust is an irrevocable life insurance trust (ILIT)?

Updated: October 02, 2024 at 01:53 PM
An irrevocable life insurance trust (ILIT) is a trust funded primarily by life insurance which cannot be modified, amended or revoked without the permission of the beneficiary. It is mechanism used in estate planning in which a grantor effectively removes all of his rights of ownership to the assets of the trust.1





1.     https://www.irs.gov/tax-professionals/tax-code-regulations-and-official-guidance.

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