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What is a life insurance trust?


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What is a life insurance trust?

Question: What is a life insurance trust?

Answer: A life insurance trust is typically an irrevocable trust that is used for estate tax purposes where you are trying to transfer the ownership of the trust outside of your estate into an irrevocable trust for the benefit of your children. The life insurance trust is intended to be set up so that upon your death the proceeds of the insurance are outside of your estate and your heirs get the proceeds from the life insurance without paying any estate taxes.

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