Legal Question in Wills and Trusts in Ohio

Depending on how the trusts are worded you may make the proceeds taxable in the surviving spouse's estate. Generally the irrevocable trust would contain provisions for the surviving spouse during his or her life and then anything in the trust would not be taxable at the surviving spouse's death.

You should seek the assistance of an experienced estate planner.

An irrevocable life insurance trust (ILIT) if done correctly is an appropriate and popular mechanism for removing the full amount of the proceeds of a life insturance policy payable on death from a decedent's estate. A life in insurance policy can either be gifted into an irrevocable life insurance trust, or the trust can purchase the policy directly, which avoids the three year gift rule where an asset can be brought back into the estate. The trustee can make annual contributions (gifts) to the trust to pay the premiums. The trust can be set up to provide for the surviving spouse and children using the same provisions of a living trust. If you have any further questions, please feel free to contact my office at http://www.socrateslegal.com .