Irrevocable
Life Insurance Trust (“ILIT”) -
Who is Eligible…You are eligible if you are a covered member, a covered member’s spouse (if agreeable to the member) or a covered member’s parent(s) and/or parent(s)-in-law.
What is the Benefit…The benefit provides covered members and their spouses, parent(s) and/or parent(s)-in-law with the opportunity to have estate planning trusts prepared and executed under the supervision of an attorney from the panel law firm.
The following schedule indicates the legal services available and the amount to be paid by the member:
Steps in the Legal Process Provided by Amount Paid by
B. Preparation and execution of special estate planning trusts, as follows:
·
Irrevocable
Life Insurance Trust (“ILIT”) -
Designed to remove life insurance proceeds from the insured’s and the surviving spouse’s taxable estate.
· Revocable Grantor Trust (Living Trust) -
Created during a person’s lifetime and can be amended or revoked by the grantor at any time.
·
Supplemental Needs Trust (Escher Type Trust) - Allows a person receiving governmental assistance (Medicaid) to receive prescribed amounts of income and
principal from trust without jeopardizing governmental assistance.
· Marital Trust – A trust, which if containing specific statutory provisions will qualify for the marital deduction, and therefore not be included in the decedent’s
taxable estate.
· Qualified Personal Residence Trust (“QPRT”) - Allows a person to place his or her personal residence in a trust and continue to have full use
of the trust for a number of years, providing such term is less than the grantor’s life expectancy.
· Medicaid Planning Trust – Allows a person to protect his/her assets, including his or her personal residence, from being taken to cover the costs of
long-term care
* To be credited to fee for preparation of trust.
** Usual and customary fee charged by the panel law firm for 2008 is $3,250 per trust for all trusts except QRPT trusts, which are $3,700 per trust and
Medicaid Planning trusts, which are $6,000 per trust. Fees may change year to year. All fees for these trusts include the preparation of one deed to transfer
New York State real estate (where applicable) to the trust. It may be required, in some instances, to prepare new Wills to coordinate with the specially
tailored estate plan. The fee for said Will will vary, depending upon the nature of the estate plan.
How to Obtain the Benefit…The Estate Planning Benefit is provided by the Fund through an arrangement with a panel law firm specializing in this area.
To obtain the Estate Planning Benefit, you should contact your Local Organization to request an appointment.