Does a life insurance trust have to file a tax return?
Does a life insurance trust have to file a tax return?
Most ILITs do not have taxable income and therefore do not require an income tax return. In terms of gift tax reporting, if you transferred an existing life insurance policy to the ILIT, a gift tax return may be required to inform the IRS of the transfer (gift) of the life insurance policy to the ILIT. Oct 1, 2021