A(n)________ trust is a trust for the benefit of the spouse and/or children that allows you to avoid paying estate taxes on life insurance proceeds owned within the trust.

Question

Quizplus · Accepted Answer

An irrevocable trust, once established, cannot be altered or terminated by the grantor. When life insurance proceeds are owned by an irrevocable trust, they are not considered part of the estate and thus are not subject to estate taxes, benefiting the spouse and/or children financially.

A(n)________ Trust Is a Trust for the Benefit of the Spouse