If I have a life insurance policy that was included in a living Trust, what are the beneficiaries’ rights?

UPDATED: Nov 13, 2013

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If I have a life insurance policy that was included in a living Trust, what are the beneficiaries’ rights?

The beneficiaries are my 3 children. The problem is that there are 5 total children in the Trust. Did my life insurance policy for my 3 children belong in the Trust? As it is now, my wife has passed and there is a survivors Trust that is split equally between the children. However it does not seem right that the other 2 children get credit for that money in the life insurance.

Asked on November 13, 2013 under Estate Planning, California


MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

A life insurance policy has named beneficiaries because they will take outside of probate (WILL OR TRUST). Therefore, there shouldn't be a problem with this because your life insurance could probably be taken out of the survivors trust for you if it is still revocable for your part. Further, it may not have any legal effect because an insurance company is not going to pay out to unnamed beneficiaries.

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