Irrevocable Life Insurance Trust Calculator

Irrevocable Life Insurance Trust (ILIT) Calculator

Personal Information

Age of Insured

Marital Status

State of Residence

Life Insurance Policy Details

Policy Type

Policy Face Value ($)

Annual Premium Amount ($)

Currently Owned by Insured?

Estate Information

Current Net Worth ($)

Projected Estate Growth Rate (%)

Life Expectancy (Years)

Estate Tax Considerations

Federal Estate Tax Exemption Amount ($)

State Estate Tax Exemption Amount ($)

Federal Estate Tax Rate (%)

State Estate Tax Rate (%)

Gift Tax Considerations

Annual Gift Tax Exclusion per Donee ($)

Lifetime Gift Tax Exemption Used ($)

Number of Beneficiaries

ILIT Funding Strategies

Premium Payment Method

Using Crummey Letters?

Other Considerations

Professional Fees ($)

Results

Estate Tax Savings Analysis

Gift Tax Analysis

Heirs’ Inheritance Impact

Cash Flow Analysis

Tax Compliance Considerations

AI Suggestions

Disclaimer: This calculator provides estimates for informational purposes only and does not constitute legal, tax, or financial advice. Estate planning involves complex laws and regulations. Please consult a qualified attorney or tax professional for personalized guidance.

Data Privacy: All data entered is confidential and will not be stored or shared without your consent.

Frequently Asked Questions

What is an Irrevocable Life Insurance Trust (ILIT)?

An ILIT is a type of trust that holds a life insurance policy to remove the policy’s death benefit from the insured’s taxable estate, potentially reducing estate taxes and providing asset protection.

How does an ILIT reduce estate taxes?

By transferring ownership of a life insurance policy to an ILIT, the death benefit is excluded from the insured’s estate, potentially reducing estate tax liability.

What are Crummey Letters?

Crummey Letters are notices sent to trust beneficiaries informing them of their right to withdraw gifted funds for a limited time, allowing gifts to qualify for the annual gift tax exclusion.

What is the Three-Year Rule?

If the insured transfers an existing life insurance policy to an ILIT and dies within three years, the policy’s death benefit may be included in the taxable estate.