Irrevocable Life Insurance Trust for Single Individual: Trust for Children (Illinois)

This legal template refers to the creation of an Irrevocable Life Insurance Trust (ILIT) in the state of Illinois, in the United States. The specific context is focused on a single individual, who intends to establish a trust primarily dedicated to the financial welfare of their children.

An ILIT is a powerful estate planning tool that allows individuals to control the distribution and management of their life insurance policy proceeds even after their passing, ensuring that those funds serve the intended beneficiaries' best interests. By establishing the trust as "irrevocable," the individual establishes a clear intention to relinquish control over the trust assets, providing certain tax benefits.

The main purpose of this particular ILIT template is to cater to the needs of single individuals residing in Illinois who desire to secure financial stability for their children. By structuring this trust, the grantor (single individual) can safeguard the life insurance policy proceeds for their children's benefit, providing various protective measures and minimizing estate taxes, thereby maximizing the value of the inheritance.

As this template is governed by the laws of the state of Illinois and adheres to the legal provisions outlined by the United States, it ensures compliance with applicable regulations and offers guidelines for the creation, administration, and management of such a trust. It likely encompasses essential provisions like the appointment of a trustee, instructions on trust funding, income distribution guidelines, and the ultimate transfer of assets to beneficiaries.

Overall, this legal template aims to serve as a comprehensive blueprint for a single individual in Illinois to establish an Irrevocable Life Insurance Trust specifically tailored to protect and provide for their children's financial future in accordance with the relevant laws and regulations of the state and federal government.