Even though 51% of American’s (according to a recent CBS/NYT survey) disapprove of the Affordable Care Act, it is “here to stay,” according to President Obama. The President states that in “[f]ive days from now, on Oct. 1, millions of Americans who don’t have health insurance because they’ve been priced out of the market…will finally be able to buy [it].”

While President Obama has made efforts to “protect” you in regards to health insurance, you should start making your own plans to properly protect your life insurance. For many, especially young people who have yet to build up their assets, a Irrevocable Life Insurance Trust (“ILIT”) can be very beneficial. For parents, you can ensure that you are providing for your your children, by having your life insurance policy go into a trust, which incorporates your intent regarding when and how your children receive the money following your death. Furthermore, many people don’t realize that the proceeds of life insurance are included in the gross estate of the “owner” upon death (possibly using up a lot of your transfer tax exemption). Using an ILIT removes the “incidents of ownership” over the proceeds, and therefore your estate does not have to pay transfer taxes on it. Additionally, when the ILIT is set up for the benefit of your spouse to then pass to your children; the proceeds will not be included in your spouse’s gross estate when he/her dies. You can also set up the ILIT to a Dynasty Trust or Generation Skipping Trust, for the continued benefit of future generations.

So while the POTUS is ensuring you get your health insurance, be sure to obtain the following benefits with an ILIT:

  • avoid estate tax of proceeds
  • shelter property from creditors at death
  • provide income and support for beneficiares
  • meet the liquidity needs of the Grantor’s estate


For more information on successful Florida estate planning and asset protection techniques, please contact the South Florida law firm of Wild Felice & Partners, P.A. at 954-944-2855 to schedule your free consultation.

It’s a Wild world.  Are you protected?