life insurance trust

Definition of "life insurance trust"
  1. A type of trust established to hold a life insurance policy, aimed at circumventing estate tax upon the policy owner's death, which is commonly irrevocable
How to use "life insurance trust" in a sentence
  1. The wealthy business owner created a life insurance trust to protect his assets from estate tax.
  2. The life insurance trust was set up as part of their estate planning strategy.
  3. To avoid hefty estate tax, they transferred their policies into a life insurance trust.

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