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Tampa Estate Planning Attorney > Lutz Irrevocable Life Insurance/Crummey Trust Attorney

Lutz Irrevocable Life Insurance/Crummey Trust Attorney

When it comes to estate planning and securing your family’s financial future, David Toback, Attorney at Law, is a trusted name in Lutz. Our Lutz irrevocable life insurance/Crummey trust attorney is skilled in creating irrevocable life insurance trusts (ILITs) and Crummey trusts, two powerful tools that can help you protect your assets, minimize estate taxes, and ensure a seamless transfer of wealth to your loved ones.

Irrevocable Life Insurance Trusts (ILITs)

An irrevocable life insurance trust, or ILIT, is a strategic estate planning tool. Transferring ownership of your life insurance policy to an irrevocable trust means that the death benefit paid out is not subject to estate taxes. This simple yet effective strategy can save your beneficiaries a significant amount of money, ensuring that more of your hard-earned assets are passed on to them intact.

You create an irrevocable trust and transfer your life insurance policy ownership to the trust. The trust then becomes the owner and beneficiary of the policy, and upon your passing, the death benefit is paid directly to the trust. The trust’s assets, including the life insurance proceeds, are then distributed to your designated beneficiaries according to the trust’s terms, bypassing the probate process and potential estate taxes.

Crummey Trusts

A Crummey trust is a unique type of trust that allows you to make gifts to the trust while still qualifying for the annual gift tax exclusion. This strategy can be particularly useful when funding an irrevocable life insurance trust or other irrevocable trusts.

Without a Crummey provision, contributions to an irrevocable trust would be subject to gift taxes if they exceed the annual exclusion amount. However, by incorporating a Crummey provision, the trust beneficiaries are given a temporary window (typically 30 to 60 days) to withdraw the contributed funds from the trust. This qualifies the contribution as a present interest gift, allowing you to take advantage of the annual gift tax exclusion.

While the beneficiaries have the right to withdraw the funds during the specified period, they rarely do so, allowing the contributed assets to remain in the trust and grow tax-free. This strategy enables you to gradually fund the trust over time without incurring significant gift taxes, ultimately maximizing the assets available for your loved ones.

Comprehensive Estate Planning Services

At David Toback, Attorney at Law, we know what is involved in estate planning and the importance of protecting your legacy. Our experienced attorney is dedicated to crafting customized solutions that meet your unique needs and goals.

In addition to irrevocable life insurance trusts and Crummey trusts, we offer a comprehensive range of estate planning services, including:

  • Last will and testament preparation
  • Revocable living trusts
  • Powers of attorney
  • Healthcare directives
  • Asset protection strategies
  • Business succession planning

Trust Our Lutz Irrevocable Life Insurance/Crummey Trust Attorney

At David Toback, Attorney at Law, we are committed to providing personalized attention and expert legal counsel to help you deal with irrevocable life insurance trusts, Crummey trusts, and other estate planning strategies.

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