Are you a high net-worth individual seeking to maximize your inheritance while minimizing taxes paid to the government? If so, consider starting an Irrevocable Life Insurance Trust.
ILITs serve the following function for estate planning and asset protection:
An ILIT is a smart choice for high net worth individuals who want to purchase and maintain one or more life insurance policies. Since the primary purpose of an ILIT is estate tax reduction, it’s important that you consider to what extent you’re exposed to the estate tax.
Cash held inside of the ILIT and within the policy owned by the ILIT is beyond the reach of potential lawsuit creditors because the assets that it owns are not within the legal ownership of the insured or the grantor. Such assets belong exclusively to the ILIT, which is considered a separate 'person' under the law. These assets are administered by a carefully selected trustee who operates under a strict standard of care, owing a fiduciary duty to the beneficiaries of the ILIT.
Want to find out more about an Irrevocable Life Insurance Trust? Call a NCH representative today at 1-800-508-1729.
*Legal Disclaimer – NCH has prepared the content of this website for informational purposes only. It is not legal advice. An in-house independent Nevada law firm provides our legal services.*
The newly released 6th Edition of The Nevada Edge is packed with everything you need to know about the benefits of launching your business in Nevada. Download your copy now!