Photo Smoothies/Shutterstock
An irrevocable life insurance trust (ILIT) can allow affluent individuals to pass on wealth to heirs while keeping it outside of their taxable estate. This could help them reduce or avoid the estate tax upon death, which can be as high as 40 percent.
It also can help you pass over assets to individuals with special needs without affecting their eligibility for government programs like Medicaid or Social Security Disability Income (SSDI).
