Crummey Trusts #estateplantrusts
[ad_1] Everybody knows we should do this, but nobody does it. In order for an insurance policy to be estate and income tax-free it must be placed inside an irrevocable life insurance trust, know as an ILIT. If the IRS does an audit, and no crummey letters have been sent and signed and returned by the named beneficiaries (every year), they could undo the trust and bring it back to the estate for…
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