Copyright 2015 trustplanning.com
A Life Insurance Trust must be an irrevocable trust, into which a life insurance policy has been transferred. If the policy has been transferred into the trust three years prior to the Grantor's death, the policy will not be included in thte grantor's taxable estate. Grantor must not be the trustee of the trust or tax benefits are lost.
Link to This Definition:
Did you find this definition of LIFE INSURANCE TRUST helpful? You can share it by copying the code below and adding it to your blog or web page.