{"id":13357,"date":"2026-11-10T02:29:42","date_gmt":"2026-11-10T02:29:42","guid":{"rendered":"https:\/\/nrcpas.com\/life-insurance-guides\/whole-life-insurance-guide-for-families-business-owners-and-cross-border-househo\/whole-life-insurance-irrevocable-life-insurance-trust\/"},"modified":"2026-11-10T02:29:49","modified_gmt":"2026-11-10T02:29:49","slug":"whole-life-insurance-irrevocable-life-insurance-trust","status":"publish","type":"page","link":"https:\/\/nrcpas.com\/life-insurance-guides\/whole-life-insurance-guide-for-families-business-owners-and-cross-border-househo\/whole-life-insurance-irrevocable-life-insurance-trust\/","title":{"rendered":"Irrevocable Life Insurance Trust Whole Life in Florida"},"content":{"rendered":"\n<div class=\"wp-block-cover alignfull is-dark chg-hero\" style=\"min-height:460px;aspect-ratio:unset;\"><span aria-hidden=\"true\" class=\"wp-block-cover__background has-background-dim-80 has-background-dim wp-block-cover__gradient-background has-background-gradient\" style=\"background:linear-gradient(90deg,rgba(32,36,46,1) 0%,rgba(32,36,46,1) 55%,rgba(32,36,46,0.7) 100%)\"><\/span><img class=\"wp-block-cover__image-background wp-image-13356\" alt=\"A business owner reviews a whole life insurance policy and a financial projection spreadsheet at a desk with a family photo.\" src=\"https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/11\/a-business-owner-reviews-a-whole-life-insurance-policy-and-a-photo.jpg\" width=\"1376\" height=\"768\" srcset=\"https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/11\/a-business-owner-reviews-a-whole-life-insurance-policy-and-a-photo-150x150.jpg 150w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/11\/a-business-owner-reviews-a-whole-life-insurance-policy-and-a-photo-300x167.jpg 300w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/11\/a-business-owner-reviews-a-whole-life-insurance-policy-and-a-photo-768x429.jpg 768w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/11\/a-business-owner-reviews-a-whole-life-insurance-policy-and-a-photo-1024x572.jpg 1024w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/11\/a-business-owner-reviews-a-whole-life-insurance-policy-and-a-photo.jpg 1376w\" sizes=\"(max-width: 825px) 825px, 100vw\" fetchpriority=\"high\" decoding=\"async\"\/><div class=\"wp-block-cover__inner-container has-global-padding is-layout-constrained wp-block-cover-is-layout-constrained\">\n<p class=\"chg-eyebrow has-base-color has-text-color wp-block-paragraph\" style=\"text-shadow:0 1px 3px rgba(0,0,0,0.6),0 0 18px rgba(0,0,0,0.35)\">Estate Planning Life Insurance | Florida<\/p><h1 class=\"wp-block-heading has-base-color has-text-color\" style=\"text-shadow:0 1px 3px rgba(0,0,0,0.6),0 0 18px rgba(0,0,0,0.35)\">Plan how your family&#x27;s life insurance is owned, held and passed on<\/h1><p class=\"has-base-color has-text-color wp-block-paragraph\" style=\"font-size:clamp(0.875rem, 0.875rem + ((1vw - 0.2rem) * 0.625), 1.25rem);text-shadow:0 1px 3px rgba(0,0,0,0.6),0 0 18px rgba(0,0,0,0.35)\">Ask us how a trust can hold a whole life policy, and what that structure means for your family, your estate and your cash flow.<\/p><div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+13058723096\">Call us today to schedule a coverage review<\/a><\/div><div class=\"wp-block-button chg-cta chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/nrcpas.com\/contact\">Call us today to schedule a coverage review<\/a><\/div><\/div>\n<\/div><\/div>\n\n\n<p class=\"wp-block-paragraph\" style=\"font-size:0.85rem;color:#6b7280;margin-bottom:1.5rem\">By Nischay Rawal \u00b7 Published November 9, 2026<\/p>\n\n<article lang=\"en\">\n\n\n<p>If you own a business or want your family protected from a cash gap at death, you may be asking how life insurance fits your estate plan. An irrevocable life insurance trust (ILIT) is one structure for that. The trust, not you, owns the policy, receives the death benefit and follows its written terms. When it is set up correctly with whole life insurance, it can help keep the proceeds out of your taxable estate and give the trustee cash to use as the trust allows.<\/p>\n<h2>What an Irrevocable Life Insurance Trust Holding Whole Life Insurance Is<\/h2>\n<p>Owning the policy inside a trust changes how the tax rules view the owner, so ownership details come first in any review.<\/p>\n<p>Whole life insurance is a permanent policy. It is designed to cover you for your whole life, as long as premiums are paid and the policy stays in force.<\/p>\n<p>This structure often fits three groups:<\/p>\n<ul>\n<li>business owners who need cash ready at death<\/li>\n<li>families whose estates may face estate tax<\/li>\n<li>cross-border households with assets in more than one country<\/li>\n<\/ul>\n<p>An attorney prepares the trust documents. Our role is the insurance and tax view that sits alongside that legal work.<\/p>\n\n<div class=\"cta-dose-mid wp-block-group has-base-color has-accent-background-color has-text-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-32197852 wp-block-group-is-layout-constrained\" style=\"background-color:var(--wp--preset--color--accent,#20242e);color:var(--wp--preset--color--base,#ffffff);border-radius:8px;padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem;border-left:6px solid var(--wp--preset--color--cta,currentColor);box-shadow:0 2px 10px rgba(0,0,0,0.18)\">\n<p class=\"wp-block-paragraph\">If your estate or business would need cash at death, and you are weighing a trust-owned policy, our team can walk you through a coverage review. Talk it through with our team &#8212; we can walk you through how a situation like yours is usually handled and what your options are.<\/p><div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+13058723096\">Schedule a coverage review<\/a><\/div><div class=\"wp-block-button chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/nrcpas.com\/contact\">Schedule a coverage review<\/a><\/div><\/div>\n<\/div>\n\n<figure class=\"wp-block-image size-large has-custom-border\"><img decoding=\"async\" src=\"https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-joyful-senior-couple-smiling-while-reviewing-documents-tog-photo.jpg\" alt=\"A smiling senior couple reviews documents together at a desk with a laptop.\" style=\"border-radius:8px;width:100%;aspect-ratio:16\/9;object-fit:cover\"\/><\/figure>\n<h2>How the Trust Owns the Policy and What the Policy Includes<\/h2>\n<p>The trust, not the insured, should own the policy and be its beneficiary. Four roles matter in every ILIT.<\/p>\n<ul>\n<li><strong>Grantor:<\/strong> the person who funds the trust.<\/li>\n<li><strong>Trustee:<\/strong> the person or institution that holds and manages it.<\/li>\n<li><strong>Beneficiaries:<\/strong> the people who receive trust benefits.<\/li>\n<li><strong>Insured:<\/strong> the person whose life the policy covers.<\/li>\n<\/ul>\n<p>Whole life has three moving parts. Premiums are the payments set in the policy proposal, along with the payment period. Cash value is an amount that can build inside the policy under its terms; it is part of the life insurance contract. The death benefit is the amount paid when the insured dies. The <a href=\"https:\/\/www.myfloridacfo.com\/docs-sf\/consumer-services-libraries\/consumerservices-documents\/understanding-coverage\/consumer-guides\/life-insurance-guide.pdf\">Florida Department of Financial Services guide<\/a> explains cash value and policy loans in plain terms.<\/p>\n<p>Guaranteed values and non-guaranteed values are shown separately. Dividends are not guaranteed. Any illustration shows its assumptions and limits with the same emphasis as its projected numbers. Projected values are not promises, so read the limits before you rely on any figure.<\/p>\n<h2>Who Pays the Premiums and How Gifts to the Trust Work<\/h2>\n<p>Usually the grantor gives cash to the trust, and the trustee uses that cash to pay each premium. The gift tax rules decide how much can move into the trust each year without extra filing.<\/p>\n<p>For a gift in trust, the trust&#8217;s beneficiary is treated as the donee, under <a href=\"https:\/\/www.ecfr.gov\/on\/2026-10-01\/title-26\/section-25.2503-2\">26 C.F.R. \u00a7 25.2503-2<\/a>. Under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/6019\">IRC \u00a7 6019<\/a>, an individual who makes a transfer by gift in a calendar year generally must file a gift tax return for that year, unless a listed exception applies.<\/p>\n<p>Many premium gifts use a written notice that gives each beneficiary a short window to withdraw a share. The attorney drafts that process. The trustee keeps dated copies of every notice, gift and premium payment.<\/p>\n<p>Under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/2010\">IRC \u00a7 2010<\/a>, the basic exclusion amount is $15,000,000, and for a decedent dying in a calendar year after 2026, that dollar amount is increased by a cost-of-living adjustment. Cross-border families should check these figures before any gift.<\/p>\n<h2>Estate Liquidity and Uses for Business Owners<\/h2>\n<p>Estate liquidity means having cash ready to pay taxes, debts and final costs. It keeps you from selling a business or other hard-to-sell assets on a short timeline. A trust-owned death benefit can supply that cash, if the trust terms let the trustee use it that way.<\/p>\n<p>Consider a founder whose estate holds most of its value in company shares. At death, the family may need cash for bills and costs, and the shares may take time to sell. The trust could lend to the estate or buy assets from it, as its written terms allow. That is a planning option, not a promise of how any estate will be settled.<\/p>\n<p>Buy-sell agreement funding and key person coverage are separate planning subjects, each with its own rules. Our firm handles those topics too, and each needs its own review. Ownership timing matters as well. Line up the policy&#8217;s ownership with the business&#8217;s succession plan.<\/p>\n<p>A policy alone does not settle an estate or complete a business sale.<\/p>\n<h2>Tax Questions a CPA Reviews Before Coverage Is Placed<\/h2>\n<p>A CPA reviews who owns the policy, how it is funded and whether it was moved into the trust recently. Those facts drive most of the tax answer.<\/p>\n<p><strong>Ownership.<\/strong> Under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/2042\">IRC \u00a7 2042<\/a>, life insurance proceeds count in the gross estate to the extent of the amount the executor receives as insurance. They also count, to the extent of the amount other beneficiaries receive, if the decedent possessed any incident of ownership at death, exercisable alone or in conjunction with any other person. A reversionary interest counts as an incident of ownership only if its value exceeded 5 percent of the value of the policy immediately before the death of the decedent. Keeping the insured out of any ownership role is the core goal of the ILIT design.<\/p>\n<p><strong>The three-year rule.<\/strong> Under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/2035\">IRC \u00a7 2035<\/a>, a transfer of an interest in property made during the 3-year period ending on the date of death can bring that property into the gross estate if the property would have been included under section 2036, 2037, 2038, or 2042 had the interest been kept until death, subject to the statute&#8217;s exceptions, including a bona fide sale for an adequate and full consideration in money or money&#8217;s worth. The small-transfer exception in <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/2035\">\u00a7 2035(c)(3)<\/a> does not cover transfers of life insurance. If an existing policy moves into the trust and the insured dies within three years, the proceeds can still count.<\/p>\n<p><strong>Income tax.<\/strong> Under the <a href=\"https:\/\/www.irs.gov\/faqs\/interest-dividends-other-types-of-income\/life-insurance-disability-insurance-proceeds\">IRS life insurance proceeds FAQ<\/a>, proceeds are generally excluded from gross income. Interest paid on proceeds held by the insurer is taxable. Some transfers for value can change this result, so the transfer steps are reviewed first.<\/p>\n<p><strong>Cash flow and residency.<\/strong> A CPA reviews the premium amount, the payment period and the budget that funds the gifts. For cross-border households, residency, citizenship and where assets sit can change how estate and gift rules apply. Insurance is offered by our licensed agent, separately from the accounting practice.<\/p>\n<h2>How the Process Works, From Coverage Review to Policy Issue<\/h2>\n<p>The process starts with a coverage review. It then moves through trust drafting, underwriting and yearly gift planning.<\/p>\n<ol>\n<li><strong>Coverage review:<\/strong> we gather family, business and asset facts, your current estate plan and your goals for the trust.<\/li>\n<li><strong>Trust drafting:<\/strong> an attorney drafts the trust and names the trustee. We coordinate the insurance and tax points with that work.<\/li>\n<li><strong>Application and underwriting:<\/strong> the insurer asks health questions. Issue may depend on insurability.<\/li>\n<li><strong>Ownership and funding:<\/strong> the trust applies for the policy or receives an assignment of an existing one. Premium gifts begin.<\/li>\n<li><strong>Annual upkeep:<\/strong> notices, gift records and the policy are reviewed each year.<\/li>\n<\/ol>\n<p>Allow time for trust drafting and underwriting. The length varies with the facts and the insurer. Fees for a coverage review are explained in writing before any work begins, along with what those fees depend on. The licensed agent may receive commission on a policy placed, and that compensation is disclosed in writing before any engagement.<\/p>\n<p>NR CPAs &amp; Business Advisors is a Miami CPA firm. We help families, professionals and business owners across the United States, including Indian-American households, choose and buy life insurance. We bring a CPA&#8217;s view of tax and cash flow to that decision.<\/p>\n\n<div class=\"cta-dose-mid wp-block-group has-base-color has-accent-background-color has-text-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-32197852 wp-block-group-is-layout-constrained\" style=\"background-color:var(--wp--preset--color--accent,#20242e);color:var(--wp--preset--color--base,#ffffff);border-radius:8px;padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem;border-left:6px solid var(--wp--preset--color--cta,currentColor);box-shadow:0 2px 10px rgba(0,0,0,0.18)\">\n<h3 class=\"wp-block-heading has-base-color has-text-color\">Not sure what your next step is?<\/h3><p class=\"wp-block-paragraph\">Talk it through with our team &#8212; we can walk you through how a situation like yours is usually handled and what your options are.<\/p><div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+13058723096\">Schedule a coverage review<\/a><\/div><div class=\"wp-block-button chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/nrcpas.com\/contact\">Schedule a coverage review<\/a><\/div><\/div>\n<\/div>\n\n<figure class=\"wp-block-image size-large has-custom-border\"><img decoding=\"async\" src=\"https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/hands-typing-on-a-laptop-beside-an-insurance-document-and-a-photo.jpg\" alt=\"Hands typing on a laptop beside an insurance document and a potted plant on a desk.\" style=\"border-radius:8px;width:100%;aspect-ratio:16\/9;object-fit:cover\"\/><\/figure>\n<h2>Common Questions About Whole Life Insurance in an ILIT<\/h2>\n<p>The common questions cover the trustee, moving an existing policy into the trust and late premiums.<\/p><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Can the insured be the trustee?<\/summary><p>Trustee choice can affect whether proceeds count in the estate. The attorney advises on who should serve.<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Can an existing policy move into the trust?<\/summary><p>An existing policy can be transferred, but the three-year rule still applies. A CPA reviews the timing before any transfer.<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>What happens if a premium is paid late?<\/summary><p>Florida law requires a grace period of at least 30 days for paying any premium after the first, and the policy stays in force during that time. The insurer may charge interest of up to 8 percent per year for those days, under <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0627\/Sections\/0627.453.html\">Fla. Stat. \u00a7 627.453<\/a>.<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Who prepares the trust documents?<\/summary><p>An attorney drafts the trust. Our work covers the insurance and tax points that go with it.<\/p>\n<p>Weighing a trust-owned whole life policy for your family or company? Use the <a href=\"https:\/\/nrcpas.com\/contact\">NR CPAs &amp; Business Advisors contact page<\/a> to request a coverage review.<\/p><\/details><\/article>\n<footer class=\"disclaimer\"><em>NR CPAs &amp; Business Advisors, LLC, 782 NW 42nd Avenue, Suite 534, Miami, FL 33126. Life insurance is offered by Nischay Rawal, a Florida-licensed life and health insurance agent (license G066337). This page is general information about life insurance, not tax, legal or investment advice, and not an offer of any specific policy. Coverage, premiums and benefits depend on the issuing insurer&#x27;s underwriting and the policy&#x27;s terms. Policy loans and withdrawals reduce cash value and the death benefit and may have tax consequences.<\/em><\/footer>\n\n\n<div class=\"wp-block-group alignwide has-global-padding is-layout-constrained wp-container-core-group-is-layout-583d630a wp-block-group-is-layout-constrained\" style=\"padding-top:3rem;padding-bottom:3rem;padding-left:1.5rem;padding-right:1.5rem\">\n<h2 class=\"wp-block-heading has-text-align-center\">Why families and business owners in Florida bring this question to us<\/h2>\n<div class=\"wp-block-columns alignwide is-layout-flex wp-container-core-columns-is-layout-f56f613f wp-block-columns-is-layout-flex\"><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><p class=\"wp-block-paragraph\"><span class=\"chg-icon chg-icon--lightbulb\"><\/span><\/p><h3 class=\"wp-block-heading\">Estate planning with a tax view<\/h3><p class=\"wp-block-paragraph\">We look at how a whole life policy held in an irrevocable life insurance trust fits with your estate, your tax picture and your cash flow.<\/p><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><p class=\"wp-block-paragraph\"><span class=\"chg-icon chg-icon--users\"><\/span><\/p><h3 class=\"wp-block-heading\">Coordination with your attorney<\/h3><p class=\"wp-block-paragraph\">The trust itself is drafted by your estate planning attorney. Our team works alongside that attorney so the policy, the trust and your overall plan line up.<\/p><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><p class=\"wp-block-paragraph\"><span class=\"chg-icon chg-icon--shield\"><\/span><\/p><h3 class=\"wp-block-heading\">Whole life insurance explained plainly<\/h3><p class=\"wp-block-paragraph\">We explain how a whole life insurance policy works, including premiums, cash value and what is guaranteed versus not guaranteed. Dividends, when offered, are not guaranteed.<\/p><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><p class=\"wp-block-paragraph\"><span class=\"chg-icon chg-icon--document\"><\/span><\/p><h3 class=\"wp-block-heading\">Licensed agent, separate practice<\/h3><p class=\"wp-block-paragraph\">Insurance is offered by Nischay Rawal, a licensed insurance agent, separately from the firm&#x27;s accounting practice. The insurer&#x27;s name and policy details are provided in writing before any application.<\/p><\/div><\/div>\n\n<\/div>\n\n\n\n<div class=\"wp-block-group has-base-color has-accent-background-color has-text-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-32197852 wp-block-group-is-layout-constrained\" style=\"background-color:var(--wp--preset--color--accent,#20242e);color:var(--wp--preset--color--base,#ffffff);border-radius:8px;padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem;border-left:6px solid var(--wp--preset--color--cta,currentColor);box-shadow:0 2px 10px rgba(0,0,0,0.18)\">\n<h3 class=\"wp-block-heading has-base-color has-text-color\">Decide the trust structure before you buy the policy<\/h3><p class=\"wp-block-paragraph\">An irrevocable life insurance trust is generally difficult to change once it is set up, and who serves as trustee and how an existing policy is moved can affect the outcome. Review these choices with your attorney before you apply.<\/p><div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+13058723096\">Call us today to talk through your situation<\/a><\/div><div class=\"wp-block-button chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/nrcpas.com\/contact\">Call us today to talk through your situation<\/a><\/div><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group alignfull has-surface-background-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-583d630a wp-block-group-is-layout-constrained\" style=\"padding-top:3rem;padding-bottom:3rem;padding-left:1.5rem;padding-right:1.5rem\">\n<h2 class=\"wp-block-heading has-text-align-center\">How a coverage review works<\/h2>\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-f56f613f wp-block-columns-is-layout-flex\"><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"wp-block-group has-base-background-color has-background is-layout-flow wp-block-group-is-layout-flow\" style=\"border-radius:8px;box-shadow:0 4px 14px rgba(0,0,0,0.08);padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem\"><h3 class=\"wp-block-heading\">1. Tell us about your family and estate<\/h3><p class=\"wp-block-paragraph\">Share your goals, current coverage and any existing policies so we understand the full picture.<\/p><\/div><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"wp-block-group has-base-background-color has-background is-layout-flow wp-block-group-is-layout-flow\" style=\"border-radius:8px;box-shadow:0 4px 14px rgba(0,0,0,0.08);padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem\"><h3 class=\"wp-block-heading\">2. Review the structure with your advisors<\/h3><p class=\"wp-block-paragraph\">We discuss the trust, the policy type and the timing with your estate planning attorney and, where relevant, your tax advisor.<\/p><\/div><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"wp-block-group has-base-background-color has-background is-layout-flow wp-block-group-is-layout-flow\" style=\"border-radius:8px;box-shadow:0 4px 14px rgba(0,0,0,0.08);padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem\"><h3 class=\"wp-block-heading\">3. Decide with written details in hand<\/h3><p class=\"wp-block-paragraph\">Before any decision, you receive the policy&#x27;s specifics in writing, including the insurer, premium terms, limitations and exclusions.<\/p><\/div><\/div><\/div>\n\n<\/div>\n\n\n\n<div class=\"wp-block-group alignfull has-base-color has-primary-background-color has-text-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-4d466591 wp-block-group-is-layout-constrained\" style=\"background-color:var(--wp--preset--color--primary,#20242e);color:var(--wp--preset--color--base,#ffffff);padding-top:3rem;padding-bottom:3rem;padding-left:1.5rem;padding-right:1.5rem\">\n<h2 class=\"wp-block-heading has-text-align-center has-base-color has-text-color\">Protect your loved ones with a plan built around your whole family<\/h2>\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-0aa01211 wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+13058723096\">Call us today to schedule your coverage review<\/a><\/div><div class=\"wp-block-button chg-cta chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/nrcpas.com\/contact\">Call us today to schedule your coverage review<\/a><\/div><\/div>\n<\/div>\n\n<h2 class=\"wp-block-heading\">More of our services<\/h2><ul class=\"wp-block-list\"><li><a href=\"\/life-insurance-guides\/whole-life-insurance-guide-for-families-business-owners-and-cross-border-househo\/\">Whole Life Insurance for Families, Business Owners and Cross-Border Households<\/a><\/li><li><a href=\"\/life-insurance-guides\/whole-life-insurance-guide-for-families-business-owners-and-cross-border-househo\/florida\/\">Whole Life Insurance in Florida<\/a><\/li><\/ul>\n<!-- chg:section-siblings -->\n<nav aria-label=\"More in this section\">\n<h2>More in this section<\/h2>\n<ul><li><a href=\"\/life-insurance-guides\/whole-life-insurance-guide-for-families-business-owners-and-cross-border-househo\/whole-life-insurance-orlando\/\">Whole Life Insurance in Orlando: Coverage Review With a Florida Licensed Agent<\/a><\/li><li><a href=\"\/life-insurance-guides\/whole-life-insurance-guide-for-families-business-owners-and-cross-border-househo\/whole-life-insurance-to-pay-estate-taxes-for-families-with-assets-in-two-countri\/\">Whole Life Insurance to Pay Estate Taxes: Liquidity Planning for Families with Assets in Two Countries<\/a><\/li><li><a href=\"\/life-insurance-guides\/whole-life-insurance-guide-for-families-business-owners-and-cross-border-househo\/whole-life-versus-term-life-insurance\/\">Whole Life Versus Term Life Insurance<\/a><\/li><li><a href=\"\/life-insurance-guides\/whole-life-insurance-guide-for-families-business-owners-and-cross-border-househo\/best-life-insurance-in-florida\/\">Best Life Insurance in Florida<\/a><\/li><li><a href=\"\/life-insurance-guides\/whole-life-insurance-guide-for-families-business-owners-and-cross-border-househo\/can-a-person-with-dementia-get-life-insurance\/\">Can a person with dementia get life insurance?<\/a><\/li><\/ul>\n<\/nav>\n<!-- \/chg:section-siblings -->","protected":false},"excerpt":{"rendered":"<p>How an irrevocable life insurance trust can own whole life coverage: premiums, gift tax rules, estate liquidity and the tax questions a CPA reviews.<\/p>\n","protected":false},"author":2,"featured_media":0,"parent":1590,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"chg_review":"","chg_sendback":"","chg_canonical":"","chg_lang":"","chg_hreflang":"[{\"hreflang\": \"en\", \"href\": \"https:\/\/nrcpas.com\/life-insurance-guides\/whole-life-insurance-guide-for-families-business-owners-and-cross-border-househo\/whole-life-insurance-irrevocable-life-insurance-trust\/\"}, {\"hreflang\": \"es\", \"href\": 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and Indian-American and cross-border households in Florida weighing trust-owned whole life insurance\"}, \"provider\": {\"@type\": \"Organization\", \"@id\": \"https:\/\/nrcpas.com\/life-insurance-guides\/#organization\", \"name\": \"NR CPAs & Business Advisors\", \"url\": \"https:\/\/nrcpas.com\/\"}, \"speakable\": {\"@type\": \"SpeakableSpecification\", \"cssSelector\": [\"article > p:first-of-type\", \".wp-block-details p\", \"article > h1\"]}, \"areaServed\": [{\"name\": \"Florida\", \"@type\": \"State\"}, {\"name\": \"Miami\", \"@type\": \"City\"}, {\"name\": \"Fort Lauderdale\", \"@type\": \"City\"}, {\"name\": \"West Palm Beach\", \"@type\": \"City\"}, {\"name\": \"Orlando\", \"@type\": \"City\"}, {\"name\": \"Tampa\", \"@type\": \"City\"}, {\"name\": \"Jacksonville\", \"@type\": \"City\"}], \"description\": \"A plain-language guide and coverage review covering how an irrevocable life insurance trust (ILIT) can own a whole life insurance policy. Topics include the roles of grantor, trustee, beneficiaries and insured; who pays premiums; gift tax basics, annual exclusion and Crummey withdrawal notices; estate liquidity for business owners; the three-year rule; income tax treatment of death benefits; and cross-border and NRI considerations. Trust documents are prepared by an attorney. 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The attorney advises on who should serve.\"}}, {\"@type\": \"Question\", \"name\": \"Can an existing policy move into the trust?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"An existing policy can be transferred, but the three-year rule still applies. A CPA reviews the timing before any transfer.\"}}, {\"@type\": \"Question\", \"name\": \"What happens if a premium is paid late?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"Florida law requires a grace period of at least 30 days for paying any premium after the first, and the policy stays in force during that time. The insurer may charge interest of up to 8 percent per year for those days, under Fla. Stat. \u00a7 627.453.\"}}, {\"@type\": \"Question\", \"name\": \"Who prepares the trust documents?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"An attorney drafts the trust. Our work covers the insurance and tax points that go with it. 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