Chapter 30 - CHAPTER 30 IRREVOCABLE LIFE INSURANCE TRUSTS

• Jurisdiction: Colorado

Chapter 30 IRREVOCABLE LIFE INSURANCE TRUSTS

Bruce A. Fowler, Esq.

SYNOPSIS

§ 30.1 INTRODUCTION AND OBJECTIVES OF AN IRREVOCABLE LIFE INSURANCE TRUST (ILIT)

§ 30.1.1—Introduction
§ 30.1.2—Objectives of ILITs

§ 30.2 TRANSFERS TO THE TRUST AND GIFT TAX ISSUES

§ 30.2.1—Gift Tax Generally
§ 30.2.2—Transfer of an Existing Policy
§ 30.2.3—Gift Tax Annual Exclusion
§ 30.2.4—The Future Interest Rule
§ 30.2.5—Crummey Powers

§ 30.3 ESTATE TAX ISSUES

§ 30.3.1—The General Rules of I.R.C. § 2042
§ 30.3.2—Receivable by Executor — I.R.C. § 2042(1)
§ 30.3.3—Incidents of Ownership — I.R.C. § 2042(2)
§ 30.3.4—Fiduciary Powers and Removal Powers as an Incident of Ownership
§ 30.3.5—Transfer of Policies to the Trustee and the Three-Year Rule of I.R.C. § 2035
§ 30.3.6—Intent Facts Overcoming Failure to Assign Policy
§ 30.3.7—Gross Estate Inclusion of Insurance Proceeds for Unintended Persons
§ 30.3.8—Reciprocal Trust Doctrine
§ 30.3.9—Definition of Spouse
§ 30.3.10—Definition of Significant Other
§ 30.3.11—Definition of Child or Descendant

§ 30.4 GENERATION-SKIPPING TRANSFER TAX AND...