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      D.    Irrevocable Life Insurance Trust (ILIT)

1.    Primary Features -
    i)grantors forfeit control after inception of trust
    ii)provides a tax-free replacement of wealth transferred to charities
    iii)cascading income/principal generational allocations / home purchases
    iv)provides insulation from beneficiaries' potential claimants
    v)broad distribution discretion can be granted to (and exercised by) trustee

2.    Asset Transfers -
    i)grantor transfers generally limited to cash and/or marketable securities
    ii)can be the beneficiary of IRAs to utilize the 'stretch rules'
    iii)takes/holds legal title to life insurance policies
    iv)incoming spousal transfers prohibited if spouse is an income beneficiary
    v)outbound transfers to grantor are not allowed5

3.    Taxable Events / Benefits -
    i)inbound grantor transfers are taxable
    ii)inbound transfers can utilize exclusions and/or exemption equivalent
    iii)remainderman transfers can be unlimited without incurring transfer tax
    iv)remainderman transfers at death are never taxable
    v)can utilize GST exemption for generation skipping transfers

4.    Management Structures -
    i)corporate trustee managed throughout term of trust
    ii)trustee manages assets in event of incapacitation - w/o conservatorship
    iii)registered corporate trustee management is essential
    iv)may utilize an institutional trust-investment-advisor
    v)may utilize special trust protectors for personal decision making

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