Can I Put Something Other Than Life Insurance in the Trust?

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Yes. Any asset can be placed in the ILIT.  Sometimes an income producing asset is placed inside of an ILIT to provide an income stream from which to pay the premiums on the life insurance. This technique eliminates any further gifts by the trustmaker/insured to the ILIT for the purpose of paying the life insurance premiums.

What if I Want to Access the Cash Value of an ILIT?

Generally speaking, you cannot directly access the cash value of an insurance policy owned by your ILIT.  However, if the trust document permits, you can borrow funds from the life insurance trust, provided it is fully documented, interest is paid at an appropriate rate, and the loan is repaid over time. ILITs can also be designed to provide access to the cash value of the life insurance policy for the needs of your spouse or your child.