Life Insurance in a Trust in Florida 2026: Protecting What Matters Most
When you think about protecting your loved ones and your legacy, life insurance is often the first tool that comes to mind. But in Florida, many families and high-net-worth individuals take it a step further — by placing their life insurance policies into a **trust**.
This strategy, known as an **Irrevocable Life Insurance Trust (ILIT)**, can help minimize estate taxes, protect assets, and make sure your insurance proceeds are used exactly as you intend.
What Is a Life Insurance Trust?
A **life insurance trust** is a legal arrangement that owns your life insurance policy on behalf of your beneficiaries.
Instead of you personally owning the policy, the trust is the owner and beneficiary. When you pass away, the death benefit goes directly to the trust — not into your estate.
That distinction can make a big difference in how the money is distributed and taxed.
Why Consider an ILIT in Florida?
Florida doesn’t have a state estate tax, but federal estate taxes can still apply to larger estates. For families with life insurance policies worth millions, those proceeds could push your estate above the federal exemption limit.
An **Irrevocable Life Insurance Trust** helps avoid this problem.
Here’s how it benefits Floridians:
* **Estate Tax Efficiency**: The insurance proceeds are excluded from your taxable estate.
* **Creditor Protection**: Florida has strong asset-protection laws, and using a trust adds another layer of security for your heirs.
* **Control and Clarity**: You can set detailed rules for how and when your beneficiaries receive funds.
* **Smooth Estate Settlement**: Trusts help your family avoid probate, saving time and reducing emotional stress.
* **Business or Family Continuity**: Proceeds can be structured to support a surviving spouse, buy out a partner, or provide liquidity for estate expenses.
A Simple Example
Imagine a Florida couple with a $4 million estate and a $2 million life insurance policy.
If the policy is owned personally, that extra $2 million could push the total estate value into taxable territory.
By moving the policy into an **ILIT**, the $2 million is removed from their taxable estate, potentially saving hundreds of thousands in taxes — while ensuring their children and grandchildren receive the full benefit.
What to Know Before Setting Up a Trust
Setting up a life insurance trust in Florida involves careful planning. You’ll need an experienced financial advisor and an estate attorney to coordinate the trust language, ownership transfer, and premium payments.
Keep in mind: once you create an ILIT, it’s **irrevocable** — meaning you can’t change beneficiaries or take back ownership later.
That’s why it’s important to get professional guidance before finalizing anything.
Why Work with Mintco Financial
At Mintco Financial, we’ve helped families across Florida and the entire U.S. design life insurance and trust strategies that align with their goals. Whether your priority is reducing taxes, protecting assets, or leaving a meaningful legacy, our fiduciary team helps you understand each step in plain English — not legal jargon.
We work with top-rated carriers nationwide and can collaborate directly with your attorney or CPA to make sure every piece fits together smoothly.