A(n) __________ is a special type of life insurance trust that is set up for the purpose of excluding life insurance proceeds from an individual's estate, thus shielding these dollars from estate taxes.

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An irrevocable life insurance trust, or ILIT, is a special type of life insurance trust that is set up for the purpose of excluding life insurance proceeds from an individual's estate, thus shielding these dollars from estate taxes. By nature of the fact that the trust is irrevocable, the owner of the trust is not allowed to change it. However, because of the potential vast amount of estate tax savings that are possible, an ILIT is something that especially high net worth individuals may benefit from.

A(n) __________ Is a Special Type of Life Insurance Trust