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Calcimator

Life Insurance Trust (ILIT) Calculator

Calculate ILIT premium obligations and estate tax savings from removing life insurance from your estate.

Inputs

$
$
years
%
$

Results

Estate Tax Saved

$800,000

Net Savings

$470,000

Total ILIT Cost$330,000
Total Premiums$300,000
Total Trustee Fees$30,000
Per Beneficiary$1,000,000
Savings-to-Cost Ratio2.42x
How to Use This Calculator
  1. Enter Death Benefit of the policy to be held in the ILIT.
  2. Set Annual Premium and Years Remaining of premium payments.
  3. Enter Estate Tax Rate — the ILIT keeps life insurance proceeds out of your taxable estate.
  4. Set Number of Beneficiaries and Trustee Annual Fee.
  5. Review Estate Tax Saved — the key benefit of an ILIT is removing the death benefit from your gross estate.
  6. Premiums paid into an ILIT use your annual gift tax exclusion ($18,000/beneficiary in 2024).
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