An irrevocable life insurance trust (ILIT) can both hold a life insurance policy and take the place of an outright distribution to beneficiaries. A major advantage of this type of trust is it allows you discretion to provide for special needs that might relate to the education of a child or hospital bills.
What happens to your Facebook profile when you pass away? Will your wide network of friends know? Who decides what happens to your account?
It seems unimaginable in your 30s or 40s. You may be so busy working long hours and raising young children, that the possibility of losing your spouse or partner never even crosses your mind.
Lifetime gifts can play an important role in estate planning. In 2015, the federal gift tax exclusion remained at $14,000 per donee. A couple with three children could give each child up to $28,000 in 2015 without tax consequences.