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Ilit

Draft Irrevocable Life Insurance Trusts in Minutes

12 minutes with CaseMark

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1. Add your email so we know where to send the result.

2. Upload the files you want analyzed.

3. Run the workflow and we'll take it from there.

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Overview

CaseMark's ILIT drafting skill generates comprehensive Irrevocable Life Insurance Trusts that exclude life insurance proceeds from the grantor's taxable estate under IRC § 2042. The AI produces fully structured trust documents with Crummey withdrawal rights, detailed trustee powers, beneficiary distribution provisions, and state-specific execution formalities — all tailored to your client's specific circumstances.

Drafting an Irrevocable Life Insurance Trust requires meticulous attention to IRC § 2042 compliance, Crummey withdrawal mechanics, trustee power limitations, and state-specific execution formalities. A single drafting error — such as inadvertently granting the grantor an incident of ownership — can cause the entire life insurance proceeds to be included in the taxable estate, defeating the trust's purpose entirely.

CaseMark automates ILIT drafting by generating comprehensive, IRC § 2042-compliant trust documents from your client intake data and policy information. The AI ensures proper irrevocability language, Crummey withdrawal provisions, trustee safeguards, and § 2035 documentation are included in every draft, letting attorneys focus on strategic estate planning rather than repetitive document assembly.

How it works

  1. 1. Upload your client intake details and life insurance policy documents

  2. 2. AI drafts a comprehensive ILIT with IRC § 2042 compliance, Crummey powers, and trustee provisions

  3. 3. Review and customize trust articles, beneficiary terms, and distribution schedules

  4. 4. Export the finalized trust document in your preferred format (DOCX, PDF)

What you get

  • Declaration of Trust & Irrevocability Provisions

  • Parties, Trustee Succession & Fiduciary Acceptance

  • Trust Property, Policy Schedule & Assignment Language

  • Crummey Withdrawal Rights & Notice Provisions

  • Trustee Powers & Administrative Provisions

  • Beneficiary Distribution & Minor Sub-Trust Terms

  • Tax Provisions & Grantor Trust Safeguards

  • Execution Formalities & Signature Blocks

What it handles

  • IRC § 2042-compliant trust language excluding life insurance from the taxable estate

  • Crummey withdrawal rights provisions preserving annual gift tax exclusions

  • Comprehensive trustee powers, succession, and fiduciary duty clauses

  • Beneficiary distribution schedules with minor sub-trust provisions

  • Policy transfer and assignment language with § 2035 three-year rule documentation

  • State-specific execution formalities including witness and notarization requirements

Required documents

  • Client Intake Form

    Grantor details, trustee designations, beneficiary information, funding plan, and jurisdiction specifications

    .pdf, .docx

  • Life Insurance Policy Documents

    Policy declarations pages showing carrier, policy number, face amount, insured, and current ownership details

    .pdf, .docx

Supporting documents

  • Existing Estate Plan Documents

    Current will, revocable trust, or other estate planning instruments for coordination purposes

    .pdf, .docx

  • Prior ILIT or Trust Templates

    Firm-preferred trust templates or prior ILIT drafts for style and formatting guidance

    .pdf, .docx

Why teams use it

Eliminate hours of manual drafting with AI-generated trust documents that include all essential ILIT provisions out of the box

Reduce compliance risk with built-in IRC § 2042 safeguards, Crummey power requirements, and § 2035 three-year rule documentation

Produce consistent, high-quality trust documents with comprehensive trustee succession, fiduciary duty, and administrative provisions

Easily customize beneficiary terms, distribution standards, and minor sub-trust provisions to match each client's unique estate plan

Questions

How does CaseMark ensure the ILIT complies with IRC § 2042?

CaseMark's AI drafts explicit language surrendering all incidents of ownership from the grantor and ensures no retained powers under IRC §§ 2036, 2038, or 2042. The generated trust includes safeguards against grantor serving as trustee or retaining trustee-removal powers.

Does the drafted ILIT include Crummey withdrawal rights?

Yes. CaseMark automatically generates Crummey withdrawal notice provisions, specifying withdrawal periods, beneficiary notification requirements, and lapse limitations to preserve annual gift tax exclusions under IRC § 2503(b).

Can CaseMark handle both new policy applications and existing policy transfers?

Absolutely. CaseMark drafts appropriate language for both scenarios — trust-applied new policies owned ab initio and existing policy transfers with prominent § 2035 three-year rule documentation and transfer date notation.

Does the output address state-specific trust execution requirements?

CaseMark tailors execution formalities based on the trust situs jurisdiction you specify, including witness requirements, notarization provisions, and any state-specific trust law compliance language.

Can I customize beneficiary distributions and minor sub-trust provisions?

Yes. After CaseMark generates the initial draft, you can fully customize primary and contingent beneficiary designations, distribution schedules, minor sub-trust termination ages, and discretionary distribution standards.

How does CaseMark coordinate the ILIT with existing estate plans?

When you upload existing estate plan documents, CaseMark analyzes them to ensure the ILIT integrates properly with existing wills, revocable trusts, and other planning instruments, flagging potential conflicts or coordination issues.

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