A life insurance trust is created for the purpose of holding a life insurance policy and mitigating estate taxes.  If the insured is the owner of the life insurance policy when they die, the proceeds of the policy will be subject to his or her estate tax.  However, if the life insurance trust owns the policy, pays the premiums on the policy, and the insured has no control over the policy, the proceeds will not be subject to estate taxes when the insured passes away.  These trusts can be an effective estate planning tool and the attorneys at BTJD have extensive experience creating and utilizing these trusts in behalf of our clients.