By Steven J. Oshins, Esq., AEP (Distinguished) An Irrevocable Life Insurance Trust (“ILIT”) is a trust that owns one or more life insurance policies and is designed to avoid estate taxes on the death benefit. The trust must be irrevocable in order to accomplish this. The general plan is to create the trust prior to the purchase of the life insurance and have the trustee of the ILIT purchase the insurance and elect to have the ILIT named as both the owner and the beneficiary of the policy. However, in the event that the life insurance policy is owned outside…