Free Background Check Database : Switching Irrevocable Life Insurance Trusts - 9onsideration should be given to having the beneficiaries waive any claims they may possibly have against the grantor and the trustee resulting from the sale of the policyut, disinherited beneficiaries may have little reason to cooperate0o avoid a step-transaction argument from the IRS, several time should elapse between funding the new ILIT and purchasing the policy from the old ILITtherwise, the IRS might argue that the transaction is essentially an indirect gift of the policy to the new ILIT, triggering a new three-year rule under IRC Section 2035(a)eft unanswered by Revul007-13 are the tax consequences when a joint ILIT is either the seller and/or purchaser of a survivorship policyn that situation, there are two grantors (husband and wife) and, therefore, the joint trust is not wholly owned by a single grantorut, Revul007-13 does provide guidance and authority for "switching" ILITs that are wholly-owned by a single grantorowever, numerous tax a ... [Read More - Free Background Check Database]
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