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How an irrevocable life insurance trust (ILIT) works.A life insurance trust (ILIT) is a legal agreement where a life insurance policy is placed into a trust, removing it from the grantor's estate to provide asset. With a life insurance policy written in trust, the proceeds of the policy can be paid directly to your intended beneficiaries, rather than to. A life insurance trust is created when an individual transfers the ownership of their term or whole life insurance policy to a trust. The trust owns the.
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