Louisiana Irrevocable Funded Life Insurance Trust (LIFT) is a type of trust established to efficiently manage life insurance policies while providing beneficiaries with certain withdrawal rights. Lifts are designed to minimize estate taxes, protect assets, and ensure optimum benefits for the beneficiaries. This trust structure typically includes a First to Die Policy with a Survivorship Rider. A Louisiana LIFT with Beneficiaries Having Crummy Right of Withdrawal allows the beneficiaries to withdraw specific amounts contributed to the trust for a specific period. The beneficiaries receive an annual withdrawal notice, known as the "Crummy" notice, which provides them with the option to withdraw the specified amount within a limited timeframe (usually 30 days). This withdrawal right helps maintain the trust's eligibility for gift tax exclusion and ensures the tax advantages associated with irrevocable life insurance trusts. Different types of Louisiana Irrevocable Funded Life Insurance Trusts (Lifts) with Beneficiaries Having Crummy Right of Withdrawal and First to Die Policy with Survivorship Rider include: 1. Single-Life LIFT: This type of trust involves a single insured person, meaning only one individual's life is insured. Upon the insured person's death, the policy's death benefit is paid to the trust. The trust assets are then managed for the beneficiaries in accordance with the trust agreement. 2. Joint-and-Survivor LIFT: This trust structure involves two insured persons, typically spouses. It allows for the consolidation of two policies into one, combining the benefits of both policies. The death benefit is paid upon the death of the second insured, ensuring that the surviving spouse and other beneficiaries are adequately covered. 3. Revocable-to-irrevocable Conversion LIFT: This type of trust is created by converting an existing revocable trust into an irrevocable life insurance trust. By converting, the trust assets are shielded from estate taxes while still providing the beneficiaries with Crummy withdrawal rights and the benefits of a First to Die Policy with a Survivorship Rider. 4. Dynasty LIFT: A Dynasty LIFT is designed to create a lasting legacy for multiple generations. It employs generation-skipping transfer tax strategies to avoid estate taxes as the trust assets are passed down to grandchildren or even great-grandchildren. It allows for the management of wealth outside the taxable estates of beneficiaries. In summary, Louisiana Irrevocable Funded Life Insurance Trusts (Lifts) with Beneficiaries Having Crummy Right of Withdrawal and First to Die Policy with Survivorship Rider provide an effective means to transfer wealth while minimizing estate taxes. These trusts offer various options tailored to specific needs, including single-life trusts, joint-and-survivor trusts, revocable-to-irrevocable conversion trusts, and dynasty trusts. Consulting with a qualified estate planning professional is crucial to ensure the proper establishment and management of these trusts.