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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.  [Trusts](/trusts)
3.  ILITs 

ILITs Legacy Counsel 

# Irrevocable Life Insurance Trusts (ILITs)

Without an ILIT, a $5M life insurance policy on a NY resident with a $7M estate can push the estate over the cliff and cost the family roughly $1M in unnecessary state estate tax.

[Start Intake](/get-started)[Book a Consultation](https://cal.com/drewjacobs/estate-planning)

Key Points

-   ◆ Removes the death benefit from the insured's gross estate (3-year lookback applies on existing policies) 
-   ◆ Crummey withdrawal rights convert premium gifts into present-interest gifts that qualify for the annual exclusion 
-   ◆ Distribution structure can mirror the rest of the estate plan, in trust for spouse and descendants 
-   ◆ Sited in a friendly state for long-duration trusts when paired with dynasty planning 

## Existing policy vs. new policy

If the ILIT applies for a new policy, the death benefit is excluded from the estate from day one.

## Crummey notices are not optional

Each annual premium gift to the ILIT must be accompanied by Crummey notices to the beneficiaries giving them a temporary right to withdraw.

Frequently Asked

Why not just name an irrevocable trust as the beneficiary? + 

Naming a trust as beneficiary affects where the proceeds go, but it does not change estate inclusion — the policy itself is still owned by the insured and the death benefit is in the estate.

Can I be the trustee of my own ILIT? + 

No.

Related

-   [Irrevocable Trusts](/trusts/irrevocable)
-   [Dynasty Trusts](/dynasty-trusts)
-   [New York Estate Planning](/estate-planning/new-york)

Next Step

### Talk to Legacy Counsel.

Fixed-fee estate planning for clients in New York, New Jersey, and Ohio.

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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.

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Estate Planning &  Legacy Counsel

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© 2026 Legacy Counsel by Jacobs Counsel. 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.