Finseca (AALU): The Family LLC: An ILIT Alternative

The Washington Report: – Wealth Transfer Edition

“With perceived threats to grantor trusts and increasing desire for flexibility, some practitioners gravitated to the “Family LLC” as an alternative to the conventional irrevocable life insurance trust (“ILIT”).  The Family LLC provides a flexible vehicle for legacy planning that is here to stay. When life insurance is owned by a Family LLC, there is a tradeoff between the flexibility afforded by the Family LLC and the risk of estate tax inclusion to the parent/insured. And given the upcoming Corporate Transparency Act, the Family LLC may also have more complexity than previously thought.”

Click here to read the full report.

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