If you transfer an existing policy into the ILIT and that policy is paid up, you will not have to worry about future premiums. If the existing policy is not paid up, and in virtually all cases involving new policies, you will have to provide the money for future premium payments. You have two options. First, you can transfer a lump sum to the ILIT up front, and then the Trustee of the ILIT can use that sum (and the income it earns) to pay the premiums. The second and more commonly used option is to make regular (usually annual) cash gifts to the ILIT that are large enough to cover the premiums as they become due.