Comments on: What Is an Irrevocable Life Insurance Trust?

By: Neal@Wealth Pilgrim

Neal@Wealth Pilgrim — Sun, 04 Jul 2010 16:45:38 +0000

Thanks Evan. My research didn’t make that distinction. I’m very glad you did.

By: Bucksome Boomer

Bucksome Boomer — Sat, 03 Jul 2010 16:33:45 +0000

Interesting topic that we’ll need to be thinking about in the near future.

P.S. Thanks for including me in the round-up.

By: Evan

Evan — Fri, 02 Jul 2010 16:23:43 +0000

Neal,

“The 3-year look back is important. It means that if you set this irrevocable life insurance trust up but die before 3 years have gone by, the assets will be considered part of your estate. It defeats the whole purpose. That’s why you want to get going on this while you are young and healthy.”

The 3 year look back rule under IRC 2035 only applies if the life insurance is gifted to the ILIT. If the ILIT is the original purchaser or the insurance then there is no 3 year look back.

Great intro to a tough topic.

By: PT

PT — Fri, 02 Jul 2010 16:22:56 +0000

Thanks, Neal. Wish I had a nice estate. Have a nice weekend.

By: Money Reasons

Money Reasons — Fri, 02 Jul 2010 15:48:50 +0000

Thank for the mention!

Have a great 4th!!! Nice article by the way, as we all get wealthier – or are we in this stock market? !

By: Little House

Little House — Fri, 02 Jul 2010 15:20:53 +0000

Thanks for including my link! Happy 4th!

By: youngnandthrifty

youngnandthrifty — Fri, 02 Jul 2010 15:17:01 +0000

Hey wealth pilgrim!

Thanks for including me =)

By: Joe Plemon

Joe Plemon — Fri, 02 Jul 2010 10:39:30 +0000

I am not in a position to concern myself about “very high” estate taxes, but I still enjoyed the post.
Thanks for the mention.

By: IntelligentSpeculator

IntelligentSpeculator — Fri, 02 Jul 2010 10:08:55 +0000

Thanks a lot for the link and Happy Independence to you too!