ILIT funding and Crummey notices guide
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
Reviewed against: trust and estate planning references listed on the sources page.
Publisher: Larry Trustee AI Editorial Team | hello@larrytrustee.ai
What ILIT funding usually involves
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.
Why Crummey notices come up
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.
What should be reviewed before relying on the workflow
- Whether the trust document actually uses withdrawal-right design for contributions.
- Whether notices are sent consistently and documented.
- Whether premium-payment timing and trustee records are organized.
- Whether the funding process matches the broader ILIT and Crummey trust planning strategy.