What is the proper way to name a living trust as beneficiary of a life insurance policy?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What is the proper way to name a living trust as beneficiary of a life insurance policy?
Asked on November 4, 2011 under Estate Planning, Georgia
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
You are trying to do some estate planning here which is admirable. While it is perfectly legal to name a trust as the beneficiary of a life insurance policy - which is often how the trust is funded at the time of death - there are some simple basics that need to be followed. First, understand that the trust must be a valid trust and must be in existence at the time of your death. A living trust is created while you are alive and proceeds from the policy that name the trust avoid probate entirely. If the living trust is revoked prior to death then the insurance company will not honor the designation. Thus, if you do not name a contingent beneficiary the proceeds will become part of the probate estate. So just list on the beneficiary designation form "The John/Jane Doe Trust" or what ever you call the trust. Good luck.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.