High net-worth Scottsdale couple asked for assistance with funding their revocable trust with complex closely held business interests, retirement accounts and life insurance. DeAngelis Legal assisted with the update of each entity’s corporate records and transfer them to their revocable trust. The updates included amendments to the operating agreement to comply with recent ownership changes and changes in Arizona LLC law, updating records with the Arizona Corporation Commission and assignments evidencing the ownership changes. During the funding meeting, DeAngelis Legal identified a potentially large estate tax obligation caused by life insurance owned by the couple. DeAngelis Legal worked with the couple and their insurance advisor to identify and evaluate alternative solutions, which included an evaluation of how much life insurance was appropriate, terminating some policies and obtaining new policies owned by an irrevocable life insurance trust (ILIT) for the benefit of the spouse and children. For a description of irrevocable life insurance trusts see https://www.deangelislegal.com/estate-planning/advanced-estate-planning-tools/.
