Irrevocable life insurance trusts explained

Martin M. Shenkman (Member, Martin M. Shenkman, P.C.) has written a new article entitled The Practical Planner: "Insurance Trusts (ILIT) Not So Simple", Feb. 2, 2009.

Here is a summary of the article:

Irrevocable Life Insurance Trusts ("ILITs") are a common estate planning tool. But they are not as easy and simple as many planner would like to think. Some important issues are who should be trustee, which state law governs, and planning to avoid the reciprocal trust doctrine. These issues, as well as several others, are discussed in the article. While not a complete guide to ILITs, this article is a great place to start and is full of common pitfalls of careless planning.