Life insurance policies are attractive ... the Technical and Miscellaneous Revenue Act of 1988 stopped this practice by introducing the "seven-pay" test, which identifies policies bought for ...

As a result, it was common practice to include ILITs as part of the estate plan for New Jersey clients that owned their home, had modest savings and a life insurance policy with a death benefit ...

Under the New Jersey measure, any person would be prohibited from directly or indirectly engaging in any act, practice or arrangement that constitutes stranger-originated life insurance.