A trust designed to provide liquidity for an estate without increasing the size of the estate is a(n)____.

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An irrevocable life insurance trust is designed to provide liquidity for an estate by using life insurance as an asset, without increasing the size of the estate. This type of trust is established outside of the estate, with the life insurance policy owned by the trust. It can provide tax benefits by removing the proceeds of the policy from the estate, and can also offer creditor protection.

A Trust Designed to Provide Liquidity for an Estate Without