Many of us use the Uniform Gifts to Minors Act (UGMA) to hold money or other property for a minor child that otherwise would not be able to be held in their name.
An Irrevocable Life Insurance Trust (ILIT) is a trust that cannot be rescinded, amended or modified post creation. (Of course if you stop paying the insurance premiums, the trust will self-destruct). These trusts are designed to own a life insurance policy.
A will allows the testator (the person creating the will) to specify: • Who receives property at the testator’s death. • Whether beneficiaries receive gifts outright or in trust. • Who will act as personal representative. • Who will be the guardian of minor children. In the absence of a will, these matters are settled […]