Best Practices for ILIT Funding & Administration

  • Obtaining a Taxpayer Identification Number (TIN)
  • Acquisition of Life Insurance by an ILIT
  • Retention of Original Insurance Contracts by ILIT Trustee
  • Calendar Premium Notices for a Period of Years
  • Establish Checking Account for the ILIT
  • Remind Grantor When and How much to Gift
  • Confirm Funds Available and Date of Gift 
  • Notify Beneficiaries of Withdrawal Rights
  • Record and Store Notice Response or Lack thereof 
  • Pay Insurance Policy Premium
  • Periodically Update Contact Information for All Parties
  • Review Insurance Policies Performance and Stress Test the Policies Longevity Relative to the Objectives of the Trust