An ILIT is an irrevocable trust set up with a life insurance policy as the asset, allowing the grantor of the policy to exempt assets away from their taxable estate.

Related Terms

  • Trustee

  • Testamentary Trust

  • Special Needs Trust

  • Revocable Trust

  • Qualified Terminable Interest Property (QTIP) Trust

  • Living Trust

  • Irrevocable Trust

  • Grantor

  • Generation-Skipping Trust (GST)

  • Credit Shelter Trust (CST)

  • Charitable Remainder Unitrust (CRUT)

  • Charitable Remainder Trust

  • Blind Trust

  • Asset Protection Trust (APT)