US 2028 ILIT Trust

2028 ILIT: removes life insurance death benefit from taxable estate. Saves 40% estate tax. 3-year lookback for transferred policies. Crummey letters required.

Life insurance death benefit ($)

Total estate size ($)

ILIT Saves

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Without ILIT

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Death benefit	—
Without ILIT tax	—
With ILIT tax	—
ILIT savings 2028	—

Irrevocable Life Insurance Trust (ILIT) removes life insurance death benefit from your taxable estate. Used by high-net-worth families to provide tax-free liquidity for estate tax payment + heirs. 3-year lookback for transferred existing policies — best to buy new policy directly in ILIT. Crummey withdrawal rights bypass gift tax.

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Last updated May 2026. Sources: IRS Estate.