--- title: "ILIT Attorney | Irrevocable Life Insurance Trust | Legacy Counsel" description: "An ILIT keeps life insurance death benefits out of your taxable estate." lang: en json-ld: | [ { "@context": "https://schema.org", "@graph": [ { "@type": "LegalService", "@id": "https://jacobslegacycounsel.com/#legalservice", "name": "Jacobs Legacy Counsel", "alternateName": [ "Legacy Counsel by Jacobs Counsel", "Jacobs Legacy" ], "url": "https://jacobslegacycounsel.com", "description": "Fixed-fee estate planning for high-net-worth families, founders, executives, and professional athletes. Licensed in New York, New Jersey, and Ohio.", "logo": "https://jacobslegacycounsel.com/logo-dark.jpg", "image": "https://jacobslegacycounsel.com/og-image.jpg", "telephone": "+1-646-343-7227", "email": "intake@jacobscounsellaw.com", "priceRange": "Fixed-fee engagements", "address": { "@type": "PostalAddress", "streetAddress": "221 River Street, Floor 9", "addressLocality": "Hoboken", "addressRegion": "NJ", "postalCode": "07030", "addressCountry": "US" }, "areaServed": [ { "@type": "State", "name": "New York" }, { "@type": "State", "name": "New Jersey" }, { "@type": "State", "name": "Ohio" } ], "knowsAbout": [ "Estate planning", "Revocable living trusts", "Irrevocable trusts", "Dynasty trusts", "Asset protection planning", "Generation-skipping transfer tax planning", "Estate planning for professional athletes", "Estate planning for founders and executives", "QSBS planning", "Pre-liquidity estate planning", "Probate and trust administration" ], "contactPoint": { "@type": "ContactPoint", "telephone": "+1-646-343-7227", "email": "intake@jacobscounsellaw.com", "contactType": "client intake", "areaServed": [ "US-NY", "US-NJ", "US-OH" ], "availableLanguage": [ "en" ] }, "founder": { "@id": "https://jacobscounsellaw.com/about/drew-jacobs#person" }, "employee": { "@id": "https://jacobscounsellaw.com/about/drew-jacobs#person" }, "parentOrganization": { "@type": "LegalService", "@id": "https://jacobscounsellaw.com/#legalservice", "name": "Jacobs Counsel LLC", "url": "https://jacobscounsellaw.com" }, "sameAs": [ "https://jacobscounsellaw.com", "https://www.linkedin.com/company/jacobs-counsel", "https://www.instagram.com/jacobscounsel" ] }, { "@type": "WebSite", "@id": "https://jacobslegacycounsel.com/#website", "url": "https://jacobslegacycounsel.com", "name": "Jacobs Legacy Counsel", "publisher": { "@id": "https://jacobslegacycounsel.com/#legalservice" }, "inLanguage": "en-US" }, { "@type": "Person", "@id": "https://jacobscounsellaw.com/about/drew-jacobs#person", "name": "Andrew R. Jacobs, Esq.", "alternateName": "Drew Jacobs", "url": "https://jacobscounsellaw.com/about/drew-jacobs", "jobTitle": "Founder & Managing Attorney", "worksFor": { "@id": "https://jacobscounsellaw.com/#legalservice" }, "sameAs": [ "https://jacobslegacycounsel.com", "https://www.linkedin.com/in/drew-jacobs-dj32/", "https://www.instagram.com/jacobscounsel", "https://profiles.superlawyers.com/new-york-metro/hoboken/lawyer/andrew-jacobs/5765bbd8-0554-4eb5-be6d-0431db28f834.html", "https://www.avvo.com/attorneys/07030-nj-andrew-jacobs-5765bbd8.html", "https://iapps.courts.state.ny.us/attorneyservices/search?lastName=jacobs&firstName=andrew" ] } ] }, [ { "@context": "https://schema.org", "@type": "WebPage", "name": "ILIT Attorney — Irrevocable Life Insurance Trusts", "description": "An ILIT keeps life insurance death benefits out of your taxable estate.", "url": "https://jacobslegacycounsel.com/ilit-attorney", "isPartOf": { "@type": "LegalService", "name": "Legacy Counsel by Jacobs Counsel LLC", "url": "https://jacobslegacycounsel.com" } }, { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [ { "@type": "Question", "name": "Can I be the trustee of my own ILIT?", "acceptedAnswer": { "@type": "Answer", "text": "No." } }, { "@type": "Question", "name": "What if I already own the policy?", "acceptedAnswer": { "@type": "Answer", "text": "We can transfer it to the ILIT, but IRC §2035 imposes a three-year lookback." } }, { "@type": "Question", "name": "Are Crummey notices really required?", "acceptedAnswer": { "@type": "Answer", "text": "Yes." } }, { "@type": "Question", "name": "Does an ILIT make sense if my estate is under the federal exemption?", "acceptedAnswer": { "@type": "Answer", "text": "Often yes in New York because of the state cliff, and frequently for asset protection and beneficiary management even when federal estate tax is not the driver." } } ] } ], { "@context": "https://schema.org", "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://jacobslegacycounsel.com/" }, { "@type": "ListItem", "position": 2, "name": "Ilit Attorney", "item": "https://jacobslegacycounsel.com/ilit-attorney" } ] } ] --- A Practice of [Jacobs Counsel LLC](https://jacobscounsellaw.com) Serving NY · NJ · OH — Vol. 2026 [Legacy Counsel ](/) Firm Resources Estate Planning Trusts [Probate & Admin](/probate-trust-administration)[Pricing](/pricing)[Book Call](https://cal.com/drewjacobs/estate-planning)[Start Intake](/get-started) Menu 1. [Home](/) 2. Ilit Attorney ILIT Legacy Counsel # ILIT Attorney — Irrevocable Life Insurance Trusts Quick answer: An Irrevocable Life Insurance Trust (ILIT) owns your life insurance policy so the death benefit is paid to the trust — not to your estate — and is not subject to federal or state estate tax. [Start Intake](/get-started)[Book a Consultation](https://cal.com/drewjacobs/estate-planning) Key Points - ◆ Who it is for: anyone with life insurance above ~$1M, especially New York residents and high earners with significant policies - ◆ What it solves: estate tax inclusion of the death benefit, lack of probate privacy, and uncoordinated payouts to young beneficiaries - ◆ Requires the trust — not you — to own the policy and pay premiums (often via Crummey gifts) - ◆ Three-year lookback applies if you transfer an existing policy ## How an ILIT works You create an irrevocable trust, name an independent trustee, and the trust applies for and owns a new life insurance policy on your life. At death, the carrier pays the death benefit to the trust. ## Common mistakes we fix Owning the policy personally and assuming the death benefit is tax-free — it is income-tax-free, but it is included in your taxable estate. Transferring an existing policy into the ILIT and dying within three years (IRC §2035 pulls it back into the estate). Skipping Crummey notices, which can disqualify the annual exclusion treatment of premium gifts. ## New York, New Jersey & Ohio considerations New York: with a state estate tax cliff around $7.16M, a $5M policy can singlehandedly push a family into the cliff zone. New Jersey: no estate tax, but the inheritance tax can still apply when proceeds pass to Class C/D beneficiaries unless properly structured. Ohio: no estate tax, but ILITs remain valuable for asset protection, generational planning, and second-marriage situations. ## How Legacy Counsel helps We coordinate ILIT design with your insurance broker so the policy is issued directly to the trust, draft Crummey notice procedures, and provide annual administration guidance. Frequently Asked Can I be the trustee of my own ILIT? + No. What if I already own the policy? + We can transfer it to the ILIT, but IRC §2035 imposes a three-year lookback. Are Crummey notices really required? + Yes. Does an ILIT make sense if my estate is under the federal exemption? + Often yes in New York because of the state cliff, and frequently for asset protection and beneficiary management even when federal estate tax is not the driver. Related - [All Trusts](/trusts) - [Irrevocable Trusts](/irrevocable-trust-attorney) - [SLATs](/slat-attorney) - [Dynasty Trusts](/dynasty-trust-attorney) Next Step ### Talk to Legacy Counsel. Fixed-fee estate planning for clients in New York, New Jersey, and Ohio. [Start Intake](/get-started)[Book a Consultation](https://cal.com/drewjacobs/estate-planning) Drew Jacobs is licensed in New York, New Jersey, and Ohio. Nothing on this page constitutes legal advice or an offer to represent you in a jurisdiction in which we are not licensed. **Prospective Client Disclaimer.** Submitting this form does not create an attorney-client relationship. Do not send confidential or time-sensitive information until we have signed an engagement letter. We will review your submission and follow up to discuss whether we can represent you. By submitting, you consent to be contacted about your inquiry. Estate Planning & Legacy Counsel Legacy Counsel by Jacobs Counsel. Fixed-fee estate planning, trusts, wills, and generational wealth strategy for high-net-worth families. 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All rights reserved. Attorney Advertising. Prior results do not guarantee a similar outcome. **Jurisdiction.** Drew Jacobs is licensed to practice law in New York, New Jersey, and Ohio . Estate planning is highly state-specific — laws governing wills, trusts, probate, estate and inheritance tax, and asset protection vary materially by jurisdiction. We represent clients whose residence, primary assets, or business interests are situated in NY, NJ, or OH. For matters involving other states, we coordinate with qualified local counsel. Nothing on this site constitutes legal advice or an offer to represent you in a jurisdiction in which we are not licensed.