Ownership, Probate, and Divorce: Costs and Rates – Page 5

Can an ILIT Distribute Money While the Insured Is Alive?

September 28, 2026February 5, 2024 by easygrouse76

The bottom line Can an ILIT trustee distribute money during the insured’s lifetime? Yes, but only when the trust instrument authorizes a payment to a beneficiary. The trustee must follow that language and applicable state law, preserve enough assets for the policy’s purpose, and document why the distribution is permitted. An irrevocable life insurance trust … Read more

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