Irrevocable Life Insurance Trust Worksheet

Vol. 1, No. 8

L. Rush Hunt is currently engaged in the private practice of law in Madisonville, Kentucky, where he devotes much of his time to areas of estate and trust law. Mr. Hunt brings more than thirty years of experience in estate planning and related areas of the law to the writing of this text, including not only his legal experience but also his experience as a certified financial planner and his previous employment as a vice-president of trust services for Citizens Bank of Kentucky, where he supervised trust administration and investments. Mr. Hunt earned his B.S. in accounting from Murray State University, his J.D. from the University of Louisville School of Law, and his Ph.D. in public law at Southern Illinois University. A frequent lecturer at continuing legal education seminars for both lawyers and accountants, Mr. Hunt is a member of the General Practice, Solo and Small Firm Section of the American Bar Association; the Kentucky Bar Association; and the Christian Legal Society.

 

From Estate Planning Forms

 

  • Use this helpful worksheet to set up an irrevocable life insurance trust.

 

1. Grantor Information

1.1 Grantor Name

1.2 Grantor City and State

 

2. Trustee Information

2.1 Trustee Name

2.2 Trustee City and State

 

3. Name of Trust

“________________________________ Life Insurance Trust”

 

4. Family Information

4.1 Name of Spouse

4.2 Names of Children

4.3 Are any of the above-named children step-children? Yes / No

4.4 Are provisions needed for after-born children? Yes / No

4.5 Are provisions needed for adopted and/or illegitimately born children? Yes / No

(See Paragraph 11)

 

5. Withdrawal Rights for Children

Greater of $5,000 or 5% of principal value? (Option 1) Yes / No

Amount of annual federal gift tax exclusion? (Option 2) Yes / No

 

6. Trust upon Grantor’s Death

(Separate Trust for Each Child)

A. Provision for educational incentive? Yes / No

(See Paragraph 8.b)

B. Provision for distribution to beneficiary’s descendants? Yes / No

(See Paragraph 8.c)

C. Provision for trustee authority to withhold? Yes / No

(See Paragraph 8.d)

D. If a child is deceased:

Deceased child’s share distributed

to such child’s estate? (Option 1) Yes / No

(See Paragraph 8.f)

or Deceased child’s share per stirpes

to lineal descendants? (Option 2) Yes / No

(See Paragraph 8.f)

 

7. Default Provisions (If Needed) If All Named Beneficiaries Deceased:

 

8. Definition of “Child” and “Descendant”

Include adopted prior to age ___________ (18, 21, etc.)

Include provision for illegitimate children (treated same, etc.)? Yes / No

 

9. Powers

Environmental Powers? Yes / No (See Master Will Paragraph 15)

Farm Powers? Yes / No (See Master Will Paragraph 16)

Limitation on Trustee Powers? Yes / No

 

10. Trustees

Name of initial trustee:

Name of first successor trustee:

Name of second successor trustee:

Corporate trustee compensation? (Option 1) Yes / No

Individual reimbursed for expenses but no compensation? (Option 2) Yes / No

Individual receives compensation? (Option 3) Yes / No

Amount of compensation: $

 

11. Incompetency

One physician decides? (Option 1) Yes / No

Two physicians decide and one board certified? (Option 2) Yes / No

 

12. No-Contest

Is No-Contest provision needed? Yes / No

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Click here to purchase Estate Planning Forms

Did you find this article helpful? Do you think more information like this would help you? More information is available. This material is excerpted from Estate Planning Forms, 2009, by L. Rush Hunt, published by the American Bar Association General Practice, Solo and Small Firm Division and available to members of the GP/Solo Division for a discounted price through the link provided at the end of this article. Copyright © 2009 by the American Bar Association. Reprinted with permission. All rights reserved. This information or any or portion thereof may not be copied or disseminated in any form or by any means or stored in an electronic database or retrieval system without the express written consent of the American Bar Association. GP/Solo members can purchase this book at a discount.

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