Why So Many Florida Families Are Putting Their Life Insurance in a Trust
A few years ago, a couple from Tampa came to us with a simple question:
“We’ve worked hard our whole lives. We have a good life insurance policy — but how do we make sure the money really goes where we want it to go?”
That’s when we talked about setting up a **life insurance trust** — or what’s officially called an **Irrevocable Life Insurance Trust (ILIT)**.
For many Florida families, creating a trust to hold their life insurance policy is one of the smartest estate planning moves they can make. It’s about *control, protection, and peace of mind.*
What Is a Florida Irrevocable Life Insurance Trust?
Think of it as a safety vault for your life insurance.
Instead of owning your policy in your own name, the **trust** becomes the owner and beneficiary.
When you pass away, the death benefit is paid directly to the trust — not to your estate. That means it’s shielded from certain taxes, creditors, and even delays that happen during probate.
For Florida residents, where estate planning often involves second homes, business interests, or blended families, this small move can make a huge impact.
How It Helps Florida Families
Here’s why so many Floridians are turning to trust-owned life insurance:
* **Keeps Your Estate Below Federal Tax Limits**
Florida doesn’t have a state estate tax, but the *federal* one still applies for large estates. An ILIT can help keep those life insurance proceeds out of your taxable estate.
* **Protects Your Family’s Privacy and Control**
Probate is public — a trust isn’t. You decide when, how, and to whom funds are distributed.
* **Shields from Creditors and Lawsuits**
Florida has generous asset protection laws, and adding a trust takes that protection further.
* **Provides Liquidity for Estate Costs**
The trust can hold funds to pay estate taxes, debts, or business expenses so your family doesn’t have to sell assets quickly.
A Real Example from Florida
Let’s say a Sarasota couple has a $3 million estate and a $2 million life insurance policy.
If they personally own the policy, that $2 million gets added to their estate — pushing them above the federal exemption and creating a tax bill their kids weren’t expecting.
But by placing the policy into a **Florida irrevocable life insurance trust**, that $2 million is *removed* from their estate.
Their children receive the full benefit, tax-free, just as intended.
That’s the power of thinking ahead.
Setting Up a Trust: What to Expect
Creating a life insurance trust isn’t complicated — but it does need to be done right.
You’ll want a financial advisor (that’s us) and an estate attorney to structure it properly. Once the trust is in place, it owns the policy and handles premium payments.
Because it’s **irrevocable**, you can’t change it later — so the key is getting guidance before you sign.
Why Work with Mintco Financial
At Mintco Financial, we’ve helped families throughout Florida — from Tampa and Orlando to Naples and Jacksonville — design trust-owned life insurance strategies that protect what they’ve built.
We’re independent fiduciary advisors, meaning we work for *you*, not the insurance companies.
We’ll help you understand exactly how a life insurance trust fits into your financial picture — and coordinate with your attorney to make it seamless.