Irrevocable Life Insurance Trust

An Irrevocable Life Insurance Trust (Life Insurance Trust) is designed to hold life insurance and pass the death benefit on to the trust beneficiaries in the most tax-efficient manner. The estate tax benefit is two-fold. First, if set up properly, the Life Insurance Trust prevents the death benefit from being included in the Grantor’s estate. Second, if drafted properly, the Life Insurance Trust prevents the death benefit from ever being subject to any estate tax in any beneficiary’s estate as well as protection from the trust beneficiaries’ current or future creditors.

Stretch IRA Trust

A Stretch IRA Trust is designed to help ensure one’s heirs will benefit from tax deferral available with an IRA (or qualified plan) over his or her lifetime, as well as to protect the IRA from a spendthrift beneficiary. In addition, it offers protection from the loss of an IRA to a creditor, lawsuit, or a divorcing spouse.