In an irrevocable Trust, is the trustee automatically entitled to death benefits if the settlor has specified a beneficiary?

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In an irrevocable Trust, is the trustee automatically entitled to death benefits if the settlor has specified a beneficiary?

The Trust gives everything to the Trustee upon the settlor’s death. If there was a benefiary designated, by settlor, for death benefits, does the Trustee automatically receive this, if nothing in the Trust specifically addressed the death benefits. Does a judge have the authority to rule on this, considering it is an irrevocable Trust estate.

Asked on August 12, 2012 under Estate Planning, Maryland

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If you are asking about death benefits under a policy of insurance, the designated beneficiary under the policy of insurance would get the death benefits regardless of what the irrevocable trust states. The rationale is that under the laws of all states in this country, insurance policies are not an asset of a trust unless specifically stated as such.


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