[WSBAPT] life insurance trust

[Joshua McKarcher]

Hi Shannon,

Is it safe to infer you mean an ILIT (irrevocable life insurance trust) that essentially “repays” the beneficiaries of the decedent’s estate for the estate’s payment of estate taxes?

This device works (best, most straightforwardly) when things are simple and clean, primarily meaning the beneficiaries of the estate are exactly the same as the beneficiaries of the ILIT.

Further meaning, usually, “my descendants, per stirpes” (or “…by representation” — but be consistent across documents).

If so, I can find some materials to help get you started.

Phenomenal device when done properly, and not going away anytime soon with federal estate exemption amounts cutting in half on 1/1/26 (unless Congress . . . well, you know the story . . . ).

(I'm home sick in bed today. My apologies to you all who haven't already blocked me. 😜)

Best, Josh

Joshua D. McKarcher
McKarcher Law PLLC
537 6th Street
Clarkston, WA 99403
(509) 758-3345
(509) 758-3314 (fax)
josh at mckarcherlaw.com
www.mckarcherlaw.com<http://www.mckarcherlaw.com>
________________________________
From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> on behalf of Shannon Jones <shannonj at campbellbarnettlaw.com>
Sent: Tuesday, October 29, 2024 9:22:12 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] life insurance trust


Listmates, I have come across only a few life insurance trusts in practice where the proceeds were not included in the WA taxable estate, but I’ve not ever used that planning device for a client. Is there anyone willing to share a form trust for a WA resident and/or perhaps insight into key advice to provide regarding payment of premiums to ensure the proceeds are not part of the WA taxable estate? Shannon



[cid:image001.png at 01DB29E4.08E158F0]

Shannon R. Jones | Attorney

Campbell Barnett PLLC

Direct:  253.848.3515

Office: 253.848.3513| Fax: 253.845.4941

317 South Meridian

Puyallup, WA 98371

shannonj at campbellbarnettlaw.com<mailto:shannonj at campbellbarnettlaw.com>

campbellbarnettlaw.com<https://campbellbarnettlaw.com/>



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