What is a Trust with Decreasing Term Policy?

A Trust with Decreasing Term Policy is a type of trust that combines a life insurance policy with a trust structure. The trust owns the policy, and the death benefit from the policy is used to fund the trust. The trust can be set up to provide for specific beneficiaries, such as children or grandchildren, and can also be structured to provide for the payment of estate taxes. The term of the policy decreases over time, and at the end of the term, the death benefit is no longer available. This type of trust can be used to provide for beneficiaries over a specific period of time, such as their education or support during their minority.