If neither the husband nor the wife is a beneficiary of the ILIT, both spouses can make gifts to the trust. In many cases, the spouses contribute insurance policies or cash which is "community property" per Texas law to an ILIT. In that case, both spouses are treated as having made a gift to the ILIT. If one spouse is a beneficiary of the trust (for example, if the husband creates a trust to benefit his wife and children) it is very important that the beneficiary spouse not make any contributions to the ILIT (which means that no community property can be contributed to the ILIT). This often means that the couple must execute a "partition agreement" each time a gift is made, to create separate property for the insured spouse to contribute to the trust.