An individual would create an irrevocable life insurance trust because:

Question

Quizplus · Accepted Answer

An individual would create an irrevocable life insurance trust because it would prevent the possibility of having to include the insurance proceeds in the estate if the policy was transferred within three years of death and without such a trust, a large life insurance policy could push the estate beyond the applicable exclusion amount. It has nothing to do with borrowing against a policy, so option C is incorrect.

An Individual Would Create an Irrevocable Life Insurance Trust Because