1 / 7

Life Insurance Trusts

Life Insurance Trusts. Definition. Beneficiary of a life insurance policy is a trust, rather than the individual the insured ultimately wants to benefit upon his/her death. Why used?. Obtain all benefits of a trust for life insurance proceeds, often the deceased’s most valuable asset.

belita
Download Presentation

Life Insurance Trusts

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Life Insurance Trusts

  2. Definition • Beneficiary of a life insurance policy is a trust, rather than the individual the insured ultimately wants to benefit upon his/her death.

  3. Why used? • Obtain all benefits of a trust for life insurance proceeds, often the deceased’s most valuable asset. • Virtually essential if client has a minor or disabled child.

  4. Recognition in Texas • Contract right to receive proceeds is sufficient to be trust property. § 111.004(12). • Life insurance may be made payable to trustee of inter vivos trust. Ins. Code§ 1104.021. • Life insurance may be made payable to trustee of testamentary trust. Ins. Code§ 1104.022.

  5. Inter vivos or testamentary? • Reasons to use inter vivos trust: • Reasons to use testamentary trust:

  6. Characteristics • 1. Transfer other property to trust? • Funded • Unfunded

  7. Characteristics • 2. Allow settlor to undo plan? • Revocable • Irrevocable [ILIT]

More Related