ILIT Question

[eloxley]

What is the name of your state? Ohio

My father-in-law recently passed away, leaving a sizeable estate. Everyone is being rather hush-hush about the whole thing, and I'd like to have a couple of questions answered. I recall several years ago, receiving at least one notice in the mail from FIL's attornies about a trust payment being made in the amount of $10k in my husband's name. We were given a set length of time to claim the $$, and not knowing what it was at the time, never thought anything of it. Husband always said to leave it, so we did.

In looking back, doesn't that sound like a beneficiary notice for an life insurance trust? I know I heard something being said about him having three trusts - marital, family and life insurance. Wouldn't that make my husband a beneficiary for the ILIT? I know this sounds petty, and I don't like asking, but don't want to press the family for any more info. I'm deeply saddened at his loss, but I'd also like to be a little more clued in to the whole situation.

If this is actually the case, does anyone know when the proceeds would be distributed? I was told because of the way the estate was structured, there will be no estate tax.

Thank you in advance for any insights/advice.

 

[anteater]

I recall several years ago, receiving at least one notice in the mail from FIL's attornies about a trust payment being made in the amount of $10k in my husband's name. We were given a set length of time to claim the $$, and not knowing what it was at the time, never thought anything of it. Husband always said to leave it, so we did.

In looking back, doesn't that sound like a beneficiary notice for an life insurance trust?

Yes, that sounds like an ILIT. And the notice sounds like a "Crummy" letter advising your husband of a gift being made to the ILIT and his right, as a beneficiary of the trust, to withdraw some or all of the gift.

If this is actually the case, does anyone know when the proceeds would be distributed?

That depends on the terms of the trust. The attorney that sent the "Crummy" letter might be the trustee. Your husband might try giving the attorney a call to see if he/she will discuss the trust.

 

[eloxley]

Thank you for the response. I'm fairly certain that the attorney is the trustee, and my husband and MIL have already met with the attornies and the accountants. Like I said, no one is telling me anything, and my husband has already made mention that nothing was left to us. I love my inlaws dearly, and that was certainly fine with me. That is, until I remembered that notice we rec'd and did some reading on life insurance trusts.

Could it be that he is a beneficiary of the trust yet still not receive the proceeds from the trust? If the trust were a "second-to-die" trust, would we still have received beneficiary notices?

Thanks again for any insights.