A detailed discussion of the contingencies of the IIT, including those in Appendix 1, will be included in the chapter on irrevocable trusts. The other items of the sample form have been included in this section as well to show the various ways a person can set up an irrevocable life insurance trust in order to take advantage of the TIP treatment for contributions that are to be made by the granter to this trust. The following illustrative example illustrates how one person may complete a TIP non-contributory irrevocable life insurance trust that can qualify as a self-employed IRA under IRC Section 408A or a retirement account under IRC Section 402(e). Example 1. This example shows the steps an individual must take to construct an irrevocable life insurance trust for non-contributory insurance contributions. This trust is subject to the “contributory provision,” which allows an individual to use his or her own cash or the proceeds of a third-party life insurance annuity to make non-contributory irrevocable life insurance contributions, up to a dollar limit imposed by IRC Section 410. In addition to using a life insurance annuity, an irrevocable life insurance trust can include the following types of coverage: (1) insurance covering life, death, or disability of a non-participating spouse; (2) a joint life insurance policy; (3) a life and/or accident insurance policy; (4) a self-insured life insurance policy; (5) any other non-contributory coverage, as long as the non-participating spouse is designated as beneficiary; (6) the personal protection bond, the personal protection annuity, the personal protection annuity/personal protection guarantee, or the special provisions described under the “Special Requirements for Certain Non-Non-contributory Health and Life Insurance Arrangements” heading in Example 3. IRR. 1. For purposes of this example, assume that an individual, John, has an income starting at 80,000 and does not have any dependents other than a child. In this example, the trust will be called the “IIT.
Editing life insurance trust form online
To use the services of a skilled PDF editor, follow these steps:
- Set up an account. If you are a new user, click Start Free Trial and establish a profile.
- Simply add a document. Select Add New from your Dashboard and import a file into the system by uploading it from your device or importing it via the cloud, online, or internal mail. Then click Begin editing.
- Edit irrevocable life insurance trust sample form. Rearrange and rotate pages, add and edit text, and use additional tools. To save changes and return to your Dashboard, click Done. The Documents tab allows you to merge, divide, lock, or unlock files.
- Save your file. Choose it from the list of records. Then, shift the pointer to the right toolbar and select one of the several exporting methods: save it in multiple formats, download it as a PDF, email it, or save it to the cloud.
It's easier to work with documents with pdfFiller than you could have ever thought. Sign up for a free account to view.