How do I set up an irrevocable life insurance trust (ILIT)?

It is advisable to solicit the services of a living trust attorney or an estate planning attorney to create this special trust whereby life insurance proceeds are exempted from the estate tax.  Some of the important decisions that need to be made are naming a living trust beneficiary of the proceeds and a trustee for the trust, such as a professional advisor, as well as acquiring a life insurance policy.  Then, the determination must be made aswhether to transfer a current policy or purchase a new life insurance policy from within the living trust.  The ILIT must also set forth the circumstances (i.e. annually or monthly) under which the beneficiaries are to paid out from the irrevocable life insurance trust.