ILIT funding and Crummey notices are often reviewed together because life-insurance premium gifts may need a clear trustee workflow, beneficiary notices, and annual recordkeeping. This topic is not just about creating the trust. It is about how the trust is funded over time and whether the administration matches the intended gifting design.
Last reviewed: March 9, 2026
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The trustee receives gift contributions, handles premium payments, keeps contribution records, and follows any required notice procedures described in the trust workflow. The review usually focuses on whether the trust is being operated consistently with the original planning intent.
Crummey notices are commonly discussed because some gifting structures rely on limited withdrawal rights tied to contributions. That means the trustee's administrative process can matter almost as much as the trust language itself.
They are often discussed together because premium gifts to an ILIT may be paired with temporary withdrawal rights and notice procedures in annual gift planning.
ILIT funding usually involves premium gifts, trustee administration, notice handling, and documenting how contributions enter the trust.
No. Creating the ILIT is the trust-formation step. Funding and notice administration are the ongoing operational steps after the trust exists.