Unwinding an ‘Irrevocable’ Life Insurance Trust That Is No Longer Needed
Jul 11, 2019
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By Michael Kitces, MSFS, MTAX, CFP, CLU, ChFC
At one time, irrevocable life insurance trusts were useful because a large death benefit could create an unseemly tax burden even for moderately wealthy families. But the drastic increase in the estate tax exemption has changed all that, so these trusts are often no longer necessary and can be eliminated in a variety of ways.