As part of an overall estate planning strategy, says JD Supra in the article “Estate Planning: The Irrevocable Life Insurance Trust,” an Irrevocable Life Insurance Trust, or ILIT, can be used to take the life insurance proceeds out of a donor’s taxable estate (in other words, making them not subject to federal or state estate tax). But there’s one catch: the donor (the owner of the policy) must live for three years after the policy is transferred to the trust in order for the