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Your most important asset isn’t the house or investments...it’s your earning power. If you have a spouse and dependents you need to take steps to ensure their financial well being by replacing your earning power in Results from search: Irrevocable Life Insurance Trust-FREE Planning Guide Irrevocable Life Insurance Trust-FREE Planning Guide Irrevocable Life Insurance Trust An Irrevocable Life Insurance Trust is used to hold a life Policy outside of an estate in order to avoid Income and Estate Taxes. Because the trust is a separate entity from the insured's estate, the Life Insurance is not a part of the net worth and therefore not subject to estate tax. Life insurance death benefits are not subject to Income Tax. 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