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No, he specifically told me that the guardian agent is selling them the policy and using the cash value as a selling point and told them to overfund the policy because it would build up the cash value that they could then borrow against at a later date. That part was made very clear to me (the reasoning for the overfunding)
Very strange.
I guess that is why the ILIT won't be the owner, but then it will still count as an asset for the estate tax. He could put the policy in the ILIT and you would still be able to borrow out. The trustee would do it to benefit the beneficiary of the trust.
I really don't get this strategy on the part of the Guardian agent. Is he new and not working with someone in his office?