Maybe it is time to consider the new Swiss Army knife of planning: the multipurpose irrevocable life insurance trust, or MILIT.
Many wealthy clients already have irrevocable life insurance trusts, or ILITs, to hold life insurance. An ILIT protects life insurance proceeds for a surviving spouse and minor children, prevents creditors from reaching proceeds and has other benefits.
Regardless of the estate-tax machinations in Washington, ILITs will remain a common estate planning tool.
But this old stalwart needs a makeover to become the keystone of planning in the new era. The bottom line will be to offer clients a single multipurpose trust to handle many planning goals.
Check out the full story: Wealthy Need New Trust Strategy