A trust that pays estate taxes out of the proceeds of a life insurance policy. An irrevocable life insurance trust is created when a married couple, or a single person, gives money to an irrevocable life insurance trust. The individuals’ children, or other beneficiaries, are named as trustees and beneficiaries. The children also can use the money in the trust to buy a survivorship life policy, which also is called a second-to-die policy. The life policy insures both spouses and is owned by the trust and names the trust as the beneficiary. The life insurance policy pays only when the second spouse dies. The children or trustees use the proceeds to pay the estate taxes. There are no estate taxes after the first spouse dies. This insurance may be obtainable even if one spouse is in bad health, because it doesn’t pay until the second, healthy person dies.