Oakland, Michigan Irrevocable Life Insurance Trust, or IIT, is a legally binding financial arrangement designed to provide financial security and tax benefits to the beneficiaries. This trust is specifically structured to hold life insurance policies on the granter's life, ensuring that the beneficiaries receive the death benefit proceeds upon the granter's passing. One notable feature of the Oakland Michigan IIT is the inclusion of the Crummy right of withdrawal, which offers added flexibility and tax advantages. The Crummy right of withdrawal allows the beneficiaries to withdraw a specific amount from the trust each year for a limited period (typically 30 days) following a contribution. By including this provision, the IIT qualifies for the annual gift tax exclusion, making it an attractive option for estate planning. The beneficiaries have the right to either withdraw their share of the contribution or let it remain in the trust, accumulating tax-free growth over time. There are several types of Oakland Michigan Irrevocable Life Insurance Trusts with the Crummy right of withdrawal, each tailored to meet specific needs and goals. These types may include: 1. Single Beneficiary IIT: This trust structure involves a single beneficiary who has the Crummy right of withdrawal. It is commonly used when the granter wants to ensure the financial security of one individual. 2. Multiple Beneficiary IIT: In this type of Oakland Michigan IIT, multiple beneficiaries are granted the Crummy right of withdrawal. It allows the granter to provide for multiple family members or individuals while still benefiting from tax advantages. The allocation of withdrawal rights among beneficiaries can vary depending on the granter's preferences. 3. Dynasty IIT: A Dynasty IIT is designed to preserve wealth across multiple generations. It allows the Crummy right of withdrawal to pass on not only to the primary beneficiaries but also to subsequent generations, creating a lasting legacy of financial security. 4. Charitable IIT: This type of IIT incorporates charitable organizations as beneficiaries alongside individuals. It allows the granter to support their favorite charitable causes while still providing for loved ones through the Crummy right of withdrawal. By establishing an Oakland Michigan Irrevocable Life Insurance Trust with the Crummy right of withdrawal, granters can protect their wealth, minimize taxes, and ensure the financial well-being of their beneficiaries. However, it is crucial to consult with an experienced estate planning attorney or financial advisor who can guide individuals through the complexities of setting up and managing such a trust.