Irrevocable Life Insurance Trust (ILIT) - Connecticut
CONNECTICUT IRREVOCABLE LIFE INSURANCE TRUST AGREEMENT
This agreement is made on [__/__/____] by [SETTLOR AND INSURED FULL LEGAL NAME] of [ADDRESS] (Settlor) and [TRUSTEE FULL LEGAL NAME] of [ADDRESS] (Trustee). The Trustee is someone other than the Settlor. The Settlor now delivers the cash identified in Schedule A to the Trustee, who accepts it as trust property.
1. Creation and beneficiaries
The trust is named [TRUST NAME] Irrevocable Life Insurance Trust. The Trustee shall hold the delivered cash, any additional property the Trustee accepts, and their proceeds under this agreement. The Settlor is not a beneficiary and has no right to receive trust property. The persons named in Section 5 are the beneficiaries. The Trustee's signed Schedule A receipt acknowledges actual delivery; listing a policy alone does not assign it or change its beneficiary.
2. Irrevocability and policy ownership
This trust is irrevocable. The Settlor retains no unilateral right to revoke or amend it, no power to direct the Trustee, and no power to change a policy's beneficiary, surrender or assign a policy, pledge it, or borrow against it. The Trustee alone shall apply for and purchase any new policy on the Settlor's life in the Trustee's fiduciary capacity, be named its owner and beneficiary on insurer records, pay its premiums from trust property, and collect proceeds. The Trustee shall confirm actual policy ownership and beneficiary designations with the insurer. A proposed transfer of an existing policy requires separate legal and tax review and completed insurer assignment forms; this instrument itself does not transfer one.
The purpose is to hold life insurance for the beneficiaries. Federal estate inclusion under 26 U.S.C. § 2042 depends on the actual policy rights held by the Settlor at death and other applicable law; this instrument promises no estate, gift, or generation-skipping tax result. The trust itself makes no GST exemption allocation under 26 U.S.C. § 2631. The Trustee shall retain contribution and policy records for tax counsel, including any analysis of the tax imposed by § 2601.
3. Additional contributions and premiums
The Trustee may accept additional cash or property from any person, identifying the contributor, date, amount, and any restrictions. The Trustee may use trust property to pay premiums and policy expenses, maintain or replace coverage, or exercise policy options in good faith. The Trustee has no duty to pay premiums from personal funds, and no contribution or withdrawal arrangement here promises an annual gift-tax exclusion. If assets are insufficient, the Trustee shall evaluate available policy options and notify the current beneficiaries of a material lapse risk.
4. Administration, notices and reports
The Trustee shall administer this trust in good faith and with reasonable care, skill, and caution. The Trustee may invest, manage, insure, and sell trust property, retain advisers, and pay reasonable expenses, subject to fiduciary duties. The Trustee shall keep adequate records, separate trust property from personal property, and maintain the policy and contribution records.
The Trustee shall give the acceptance and irrevocable-trust notices to qualified beneficiaries within the 60-day periods in Conn. Gen. Stat. § 45a-499kkk(b). The Trustee shall keep qualified beneficiaries reasonably informed, respond to reasonable administration requests, and send reports to current beneficiaries and to other qualified beneficiaries who request them at least annually and on termination, as § 45a-499kkk(c) requires. Each report shall identify property, liabilities, receipts, disbursements, trustee compensation, assets, and feasible values.
5. Death benefit, termination and complete remainder
After the Settlor's death, the Trustee shall collect any policy proceeds, pay lawful trust expenses and taxes, and distribute 100% of the remaining trust property outright to [PRIMARY BENEFICIARY FULL LEGAL NAME] of [ADDRESS], if living or in existence. If that person cannot take, the Trustee shall distribute 100% outright to [ALTERNATE BENEFICIARY OR CHARITY FULL LEGAL NAME] of [ADDRESS], or its legal successor if a charity. Complete both designations before signing. The Trustee may retain a reasonable reserve for final obligations, then distribute any unused reserve under this Section. The trust terminates after these distributions. No distribution may be made to the Settlor or the Settlor's estate under this agreement.
6. Modification and trustee succession
No nonjudicial settlement agreement may modify or terminate this irrevocable trust under Conn. Gen. Stat. § 45a-499k(e). A proposed modification or termination requires an applicable statutory route and, where required, court approval; the consent route in § 45a-499ee requires court findings and approval. The Trustee cannot unilaterally rewrite beneficial interests.
The Trustee may resign from this inter vivos trust after at least 30 days' notice to qualified beneficiaries, the living Settlor, and all cotrustees, or with court approval. If the Trustee dies, resigns, becomes unable to serve, or is removed, [FIRST SUCCESSOR TRUSTEE FULL NAME] of [ADDRESS] shall serve. If unavailable, [SECOND SUCCESSOR TRUSTEE FULL NAME] of [ADDRESS] shall serve. If neither can serve and no cotrustee remains, a successor may be appointed under the priority in Conn. Gen. Stat. § 45a-499uu. A successor shall accept in writing and obtain the trust property and records.
7. Liability and governing law
Connecticut law governs this trust. No term excuses a breach committed in bad faith or with reckless indifference to the trust's purposes or beneficiaries' interests. Contract, tort, and property-obligation liability is determined under Conn. Gen. Stat. § 45a-499www; this agreement does not cap breach remedies at the trust property's value. Trust proceedings may be brought in a Connecticut court with jurisdiction and venue under applicable law.
8. Signatures
The Settlor and Trustee intend this signed instrument and the delivered Schedule A cash to create this trust now.
Settlor signature: ______________________________ Date: [__/__/____]
Printed name: [SETTLOR AND INSURED FULL LEGAL NAME]
Trustee signature and acceptance: ______________________________ Date: [__/__/____]
Printed name: [TRUSTEE FULL LEGAL NAME]
Schedule A — Initial trust property and receipt
Cash amount delivered to Trustee: $[AMOUNT]
Delivery method and date: [METHOD], [__/__/____]
Trust account or holding location: [ACCOUNT OR LOCATION]
The Trustee acknowledges actual receipt of the cash identified above as trust property.
Trustee receipt signature: ______________________________ Date: [__/__/____]
About this template
- Last updated
- October 21, 2026
- Citations checked
- October 21, 2026
- Jurisdiction
- Connecticut
- Category
- Estate Planning & Wills
Legal authority
- Conn. Gen. Stat. § 45a-499v
- Conn. Gen. Stat. § 45a-499w
- Conn. Gen. Stat. § 45a-499k
- Conn. Gen. Stat. § 45a-499ee
- Conn. Gen. Stat. § 45a-499uu
- Conn. Gen. Stat. § 45a-499vv
- Conn. Gen. Stat. § 45a-499aaa
- Conn. Gen. Stat. § 45a-499ddd
- Conn. Gen. Stat. § 45a-499hhh
- Conn. Gen. Stat. § 45a-499kkk
- Conn. Gen. Stat. § 45a-499mmm
- Conn. Gen. Stat. § 45a-499uuu
- Conn. Gen. Stat. § 45a-499www
- 26 U.S.C. § 2042(2)
- 26 U.S.C. § 2601
- 26 U.S.C. § 2631(a)-(c)
Estate planning documents decide what happens to your property, your children, and your medical care when you cannot make those decisions yourself. Wills, trusts, powers of attorney, and health care directives each serve different purposes and each have to meet state law requirements for signing, witnessing, and notarization. A document that looks fine on the page but was not executed correctly can be rejected in probate, which is exactly when it is too late to fix.
Not legal advice
This template is provided for informational purposes. We recommend having an attorney review any legal document before signing, especially for high-value or complex matters.
Checked against the law it cites
A reviewer verified this template's legal citations against the official source on October 21, 2026.
Conn. Gen. Stat. § 45a-499v (checked October 21, 2026): "A trust may be created by: (1) Transfer of property to another person as trustee during the settlor's lifetime, by deed or otherwise"
Conn. Gen. Stat. § 45a-499w (checked October 21, 2026): "A trust is created only if: (1) The settlor has capacity to create a trust; (2) The settlor indicates an intention to create the trust"
Conn. Gen. Stat. § 45a-499k (checked October 21, 2026): "A nonjudicial settlement agreement may not modify or terminate an irrevocable trust."
Conn. Gen. Stat. § 45a-499ee (checked October 21, 2026): "If the court finds that the settlor, the trustee and all beneficiaries consent to the modification or termination of a noncharitable irrevocable trust, the court may approve the modification or termination"
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