An irrevocable life insurance trust, also known by the acronym "ILIT", is an advanced estate planning tool that can be used to minimize or avoid estate taxes. Many people purchase life insurance to help take care of their family after their passing. However, most are not aware that their family may not receive all of the proceeds. That is because life insurance proceeds are included in your estate for estate tax purposes. By creating an ILIT, you can protect the proceeds from estate taxes and take care of your family at the same time. For more information on ILITs, click here.