ILIT Attorney in Wisconsin

If you're looking for estate planning services in Wisconsin, an Irrevocable Life Insurance Trust (ILIT) might be a good option to consider. Heritage Law Office is an experienced law firm that can help you understand the benefits of an ILIT, and create a plan that is tailored to your specific needs.

Understanding ILITs

An Irrevocable Life Insurance Trust is a legal arrangement that allows you to transfer ownership of your life insurance policy to a trust. This means that the proceeds of the policy will not be included in your estate when you pass away, potentially avoiding estate taxes and other complications.

In an ILIT, you name a trustee to manage the trust and distribute the funds according to your wishes. You can also name beneficiaries who will receive the proceeds of the policy when you pass away. This can be a tax-efficient way to provide for your loved ones and protect your assets.

The Benefits of ILITs

There are many advantages to creating an Irrevocable Life Insurance Trust, including:

Tax Savings

The proceeds of a life insurance policy are typically included in your estate when you pass away, which means they may be subject to estate taxes. By transferring ownership of the policy to an ILIT, you can potentially avoid or reduce these taxes.

Asset Protection

Assets held in an ILIT are protected from creditors and lawsuits, which can be especially important if you have significant wealth or own a business.

Control Over Distribution

With an ILIT, you can specify exactly how the proceeds of your life insurance policy should be distributed. This can include leaving funds to your spouse, children, or other beneficiaries, as well as charities or other organizations.

Privacy

Because an ILIT is a private arrangement, the details of your estate plan can be kept confidential.

Who should consider an ILIT?

ILITs are most commonly used by people who have significant assets and want to minimize estate taxes. However, they can also be useful for people who want to provide for their loved ones in a tax-efficient way.

If you have a life insurance policy with a high face value and you're concerned about the potential tax consequences, an ILIT might be a good option to consider. Similarly, if you have significant assets that you want to protect from creditors or lawsuits, an ILIT can provide additional protection.

What are the potential drawbacks of an ILIT?

While there are many benefits to creating an Irrevocable Life Insurance Trust, there are also some potential drawbacks to consider. For example:

Once you transfer ownership of the policy to the trust, you can't change your mind and take it back. The trust is irrevocable, which means that it can't be changed or revoked once it's been created.
The annual gifts you make to the trust are considered taxable gifts, which means that they may be subject to gift taxes if they exceed the annual exclusion amount.
The trust must be managed properly to ensure that it complies with all legal and tax requirements. This can be complex and time-consuming, so it's important to work with an experienced attorney to ensure that the trust is set up correctly and managed properly.

Creating an ILIT in Wisconsin

If you're interested in creating an Irrevocable Life Insurance Trust, it's important to work with an experienced estate planning attorney who understands the legal and tax implications of these arrangements.

At Heritage Law Office, our attorneys can help you:

Determine whether an ILIT is right for you
Choose a trustee to manage the trust
Draft and execute the trust documents
Transfer ownership of your life insurance policy to the trust
Manage the trust and distribute the proceeds according to your wishes

Contact an ILIT Attorney in Wisconsin

If you're interested in learning more about Irrevocable Life Insurance Trusts and how they can benefit you and your family, contact Heritage Law Office today. Our experienced attorneys can provide the guidance and support you need to create an effective estate plan that meets your goals.

Cities in Wisconsin where ILIT Services are Offered

Milwaukee
Madison
Green Bay
Kenosha
Racine
Appleton
Waukesha
Oshkosh
Eau Claire
Janesville
Mequon
Elm Grove
Fox Point
Bayside
Shorewood
Whitefish Bay
Fitchburg
Brookfield
Waunakee
Cedarburg
and more.

At Heritage Law Office, we offer remote, phone, and online appointments, so you can receive services wherever you are. Contact us today to learn more about how we can help you with your estate planning needs.