Georgia Irrevocable Funded Life Insurance Trust where Beneficiaries Have Crummey Right of Withdrawal with First to Die Policy with Survivorship Rider

• Category: Trusts - Irrevocable
• State: Multi-State
• Control #: US-0675BG
• Format: Word; Rich Text

Description

An irrevocable trust is a trust that cannot be modified or terminated without the permission of the beneficiary. In most states, a trust will be deemed irrevocable unless the grantor specifies otherwise. Once the grantor has transferred assets into the tr Georgia Irrevocable Funded Life Insurance Trust with Beneficiaries' Crummy Right of Withdrawal and First to Die Policy with Survivorship Rider is a specialized estate planning tool that offers numerous benefits for individuals looking to secure their financial future and protect their loved ones. This trust, unique to Georgia, combines the benefits of an irrevocable life insurance trust, the Crummy power of withdrawal, and a first-to-die policy with a survivorship rider. In essence, an Irrevocable Life Insurance Trust (IIT) is a trust created to own and manage life insurance policies for the purpose of reducing estate taxes. By transferring ownership of the life insurance policy to the trust, the insured individual ensures that the policy proceeds will not be included in their estate, thus potentially reducing estate tax liability for their beneficiaries. Adding a Crummy power of withdrawal provision to the IIT enables beneficiaries to make annual withdrawals from the trust, up to the annual gift tax exclusion limit, without triggering gift taxes. This provision allows beneficiaries to access a portion of the trust assets, providing flexibility and liquidity to meet financial obligations or seize investment opportunities. The inclusion of a First to Die Policy with a Survivorship Rider within the trust provides additional protection for the insured's loved ones. This type of policy covers two individuals, typically spouses, and pays out upon the death of the first insured person. The survivorship rider extends coverage after the first insured's death, ensuring the surviving individual continues to have life insurance coverage. This approach can be advantageous for estate planning purposes and can help cover estate tax liabilities after the first insured's passing. Different variations of Georgia Irrevocable Funded Life Insurance Trusts with Beneficiaries' Crummy Right of Withdrawal and First-to-Die Policy with Survivorship Rider may include: 1. Single-life Georgia Irrevocable Funded Life Insurance Trust with Beneficiaries' Crummy Right of Withdrawal and First-to-Die Policy with Survivorship Rider: This type of trust covers a single insured individual, typically the primary income earner, while still offering the benefits of a survivorship rider for the secondary insured individual. 2. Second-to-die Georgia Irrevocable Funded Life Insurance Trust with Beneficiaries' Crummy Right of Withdrawal and First-to-Die Policy with Survivorship Rider: This trust variation covers two individuals, usually spouses, and pays out the life insurance proceeds after the second insured's death. It is designed to offer estate tax planning benefits by providing necessary liquidity to cover estate taxes upon the second spouse's passing. Overall, the Georgia Irrevocable Funded Life Insurance Trust with Beneficiaries' Crummy Right of Withdrawal and First-to-Die Policy with Survivorship Rider is a comprehensive estate planning tool that combines the advantages of an IIT, Crummy power of withdrawal, and a first-to-die policy with a survivorship rider. It allows individuals to protect their wealth, minimize estate taxes, maintain liquidity, and secure financial stability for their loved ones in Georgia.

Georgia Irrevocable Funded Life Insurance Trust with Beneficiaries' Crummy Right of Withdrawal and First to Die Policy with Survivorship Rider is a specialized estate planning tool that offers numerous benefits for individuals looking to secure their financial future and protect their loved ones. This trust, unique to Georgia, combines the benefits of an irrevocable life insurance trust, the Crummy power of withdrawal, and a first-to-die policy with a survivorship rider. In essence, an Irrevocable Life Insurance Trust (IIT) is a trust created to own and manage life insurance policies for the purpose of reducing estate taxes. By transferring ownership of the life insurance policy to the trust, the insured individual ensures that the policy proceeds will not be included in their estate, thus potentially reducing estate tax liability for their beneficiaries. Adding a Crummy power of withdrawal provision to the IIT enables beneficiaries to make annual withdrawals from the trust, up to the annual gift tax exclusion limit, without triggering gift taxes. This provision allows beneficiaries to access a portion of the trust assets, providing flexibility and liquidity to meet financial obligations or seize investment opportunities. The inclusion of a First to Die Policy with a Survivorship Rider within the trust provides additional protection for the insured's loved ones. This type of policy covers two individuals, typically spouses, and pays out upon the death of the first insured person. The survivorship rider extends coverage after the first insured's death, ensuring the surviving individual continues to have life insurance coverage. This approach can be advantageous for estate planning purposes and can help cover estate tax liabilities after the first insured's passing. Different variations of Georgia Irrevocable Funded Life Insurance Trusts with Beneficiaries' Crummy Right of Withdrawal and First-to-Die Policy with Survivorship Rider may include: 1. Single-life Georgia Irrevocable Funded Life Insurance Trust with Beneficiaries' Crummy Right of Withdrawal and First-to-Die Policy with Survivorship Rider: This type of trust covers a single insured individual, typically the primary income earner, while still offering the benefits of a survivorship rider for the secondary insured individual. 2. Second-to-die Georgia Irrevocable Funded Life Insurance Trust with Beneficiaries' Crummy Right of Withdrawal and First-to-Die Policy with Survivorship Rider: This trust variation covers two individuals, usually spouses, and pays out the life insurance proceeds after the second insured's death. It is designed to offer estate tax planning benefits by providing necessary liquidity to cover estate taxes upon the second spouse's passing. Overall, the Georgia Irrevocable Funded Life Insurance Trust with Beneficiaries' Crummy Right of Withdrawal and First-to-Die Policy with Survivorship Rider is a comprehensive estate planning tool that combines the advantages of an IIT, Crummy power of withdrawal, and a first-to-die policy with a survivorship rider. It allows individuals to protect their wealth, minimize estate taxes, maintain liquidity, and secure financial stability for their loved ones in Georgia.