Donor (Insured)
- Creates irrevocable trust
- Includes Crummey withdrawal provision (allows
beneficiaries to withdraw payments made to the
trust)
- Names independent trustee
- Makes gifts for premium payments
- Files GSTT and/or gift tax returns, if
necessary
- Reports trust income on personal annual income
tax return
|
|
|
Trust
- Trust or trustee buys and owns policy on life
of insured
- Serves proper Crummey notice to the
beneficiaries
- Pays premiums on policy
|
|