How an Irrevocable Life Insurance Trust Shields Your Legacy

Episode 43 of Estate Planning with Fexingo dives into the Irrevocable Life Insurance Trust (ILIT). Lucas and Luna break down how separating life insurance from your taxable estate can save heirs hundreds of thousands in estate taxes. Using a concrete example—a $2 million policy owned by an ILIT versus personally—they show the mechanics: the trust buys the policy, pays premiums with Crummey gifts, and keeps death benefits estate-tax-free. They discuss the three-year look-back rule, the role of an independent trustee, and common pitfalls like the 'incidents of ownership' trap. No fluff, just the numbers and legal logic. Perfect for anyone with a life insurance policy who wants to maximize what passes to the next generation. #IrrevocableLifeInsuranceTrust #ILIT #EstateTax #LifeInsurance #CrummeyPower #TrustPlanning #WealthTransfer #EstatePlanning #Finance #PersonalFinance #FexingoBusiness #BusinessPodcast #TaxStrategy #LifeInsuranceTrust #EstateTaxExemption #Trustee #ThreeYearLookBack #IncidentsOfOwnership Keep every episode free: buymeacoffee.com/fexingo