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.

Name: 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.
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Question

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An irrevocable trust, specifically an Irrevocable Life Insurance Trust (ILIT), is used to exclude life insurance proceeds from the estate, thus avoiding estate taxes.

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