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What is a life insurance trust?

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Video Transcript

A life insurance trust is a form of an irrevocable trust established by a grantor and designed to own a life insurance policy on the grantor's life. The benefit of the life insurance trust is that the life insurance policy will not be included in the estate of the grantor who set up the trust, and the policy proceeds can be used to provide liquidity to the estate or to even pay estate taxes.

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