How an Irrevocable Life Insurance Trust Protects Your Heirs

In Episode 22 of Estate Planning with Fexingo, Lucas and Luna dive deep into the Irrevocable Life Insurance Trust (ILIT) — a powerful estate planning tool that removes life insurance proceeds from your taxable estate. Using a concrete example of a $2 million policy, they walk through how the trust owns the policy, pays premiums via Crummey powers, and distributes tax-free cash to beneficiaries. The hosts explore the three-year look-back rule for transfers, the role of the trustee in premium notices, and a cautionary tale about an unfunded ILIT that lapsed. If you have a life insurance policy or are considering one for estate planning, this episode provides a clear, actionable blueprint for keeping death benefits out of the IRS's reach. Plus, the hosts explain why a properly structured ILIT can fund estate taxes or provide liquidity without triggering probate. #EstatePlanning #ILIT #IrrevocableLifeInsuranceTrust #LifeInsurance #EstateTax #Trust #CrummeyPower #Beneficiary #TaxFree #Probate #WealthTransfer #FexingoBusiness #BusinessPodcast #Finance #PersonalFinance #EstatePlanningTips #Trustee #LifeSettlement Keep every episode free: buymeacoffee.com/fexingo