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Post By George in Estate Planning - DocumentsFollowers of this newsletter know that a properly-structured-and-fastidiously-maintained irrevocable life insurance trust (“ILIT”) is a proven structure for shielding insurance proceeds from estate taxes. A less-touted advantage is the way an ILIT (funded by insurance proceeds following the grantor’s demise) can shield the corpus from the ruinous calamities that can befall even the most careful: plaintiff’s lawyers, general creditors, bankruptcy trustees, and the surviving spouse’s subsequent divorce proceeding. “Credit shelter trusts” can serve a similar purpose, but consult an expert for advice on how the choice of trustee and other factors bear on their relative effectiveness.