Charitable Remainder Trusts
23. Beneficiary Analysis: With CRT + LIT
Now, let's look at the effect on the Brody children.
When we add in the death proceeds from the insurance trust, the children will receive $500,000-the full market value of the stock. This is two and a half times more than they would have received if the Brodys had sold the stock themselves.
Now, why would you want to use a life insurance trust? Why not just purchase the insurance yourself?