Can I incorporate a life insurance benefit I recently received into a trust that consists of an estate?

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Can I incorporate a life insurance benefit I recently received into a trust that consists of an estate?

My godfather passed away and left me his estate (an apartment) in his Will. I am 20 years old right now and cannot take ownership of the apartment until I am 30. It is currently in a trust. Recently, I received a life insurance benefit from his life insurance provider and wanted to know if there is any way for me to incorporate that life insurance benefit into the trust that consists of the apartment building. This benefit came unexpectedly and complicates several matters for me at this time, which is why I would rather not receive the benefit just yet.

Asked on November 14, 2011 under Estate Planning, Illinois

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

If you were given several bequests from your godfather who passed away (home and life insurance proceeds) and you prefer that the proceeds from the life insurance policty be placed in the trust with the apartment that you received, then you can request the trustee that the monies received from the policy be an asset of the trust when received.

All you need to do is sign documentation to that effect and when you receive the check, have it paid over to the resulting trust for you. That way you do not have to worry about managing the money. You can simply let the trustee do it for you. You then receive from the trust what monies you need on a monthly basis.


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