Since the House Ways and Means Committee released its initial draft of proposed tax increases on 9/13/2021, many taxpayers and advisors have been expressing concern about the impact on and future of Irrevocable Life Insurance Trusts. The new commentary linked here addresses what actions to consider taking or recommending regarding existing ILITs or those to be created. Topics include:
Proposed Changes to the Transfer Tax Treatment of Irrevocable Grantor Trusts
Impact of the Proposed IRC § 2901 and IRC § 1062 on Irrevocable Life Insurance Trusts
How an Irrevocable Life Insurance Trust Can Become a Grantor Trust
What to Do with New or Existing Irrevocable Life Insurance Trusts
Please contact us with questions about these topics or others, as we are here to assist you! As always, we thank you for your partnership, and we look forward to managing the challenges of today and the future.