QUESTION
Who should the named beneficiary on a life insurance be when there is a trust ? The trust or the trustee?
Asked on Nov 01st, 2012 on Estate Planning - Kentucky
19 ANSWERS
Tax Attorney serving Naples, FL
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Henderson, Franklin, Starnes & Holt, P.A.
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The trustee, in the stated capacity of trustee.
Answered on Jun 13th, 2013 at 1:26 AM
Civil Litigation Attorney serving Ventura, CA
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The Law Office of Robert I. Long
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Check with the insurance company. Some of them will let you name the trust. The rest want you to name the trustee, like: "John Smith, trustee of the John Williams Trust, or the successor trustee."
Answered on Nov 06th, 2012 at 9:30 PM
Real Property Attorney serving Utica, MI
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Douglas A. Tull, P.C. Attorney at Law
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In Michigan, it is best to have the beneficiary designated as follows: "Joe Plumber, Trustee, or the then acting trustee of The Sam Plumber Trust, u/a/d 1/1/12" ((or whenever the date of the trust is)) So, you should name the trust. Technically the Trust can't do anything without a Trustee - since a Trust is simply an agreement (though it is a separate legal entity) - a "trust" can receipt for the proceeds of insurance, but a Trustee can (and must).
Answered on Nov 05th, 2012 at 2:58 PM
Estate Planning Attorney serving Anaheim, CA
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Dwight Edward Tompkins
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It depends on your goals and objectives. Life insurance allows for the naming of a primary and secondary beneficiary. The trust may be either the primary or secondary. Ordinarily, the trust is named as the beneficiary, e.g., Smith Family Trust dated 1/13/2008. The insurance company may have a particular format for you to follow on their beneficiary designation form.
Answered on Nov 02nd, 2012 at 7:32 PM
Business Litigation Attorney serving Orange, CA
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Law Offices of Frank Granato
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Generally, the trust should be named and the beneficiary under the life insurance policy.
Answered on Nov 02nd, 2012 at 7:30 PM
Shadi Ala'i AlaiShaffer
The trust Shadi Ala'i Shaffer, Esq. Asset Protection & Elder Law Center Founded By Phancao & Shaffer, LLP P 714.966.2646 F 714.966.1646 Shaffer@apelcenter.com www.assetprotectioncenter.com
Answered on Nov 02nd, 2012 at 7:28 PM
Taxation Law Attorney serving Glendale, CA
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Irsfeld, Irsfeld & Younger LLP
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[Name of trustee], as Trustee of the [name of trust].
Answered on Nov 01st, 2012 at 5:55 PM
The trustee should take title in his/her name as trustee of the "ABC trust dated 0/00/0000". You should consult an estate planning attorney.
Answered on Nov 01st, 2012 at 5:55 PM
Probate Attorney serving St. Louis, MO
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Edward L. Armstrong, P.C.
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The Legal owner should get the insurance proceeds and the legal owner is properly the trustee. If there is no bank account now, the trustee can certainly open an account at any time.
Answered on Nov 01st, 2012 at 5:54 PM
Thomas Edward Gates
The Trust should be named. If it was the Trustee, they could keep the proceeds. The Trust needs to get an EIN and a bank account.
Answered on Nov 01st, 2012 at 4:48 PM
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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It could either be the beneficiaries of the trust or the trustee of the trust, AS Trustee. We often suggest that if there is a spouse that the spouse be named as the primary beneficiary and the trust, as secondary.
Answered on Nov 01st, 2012 at 4:28 PM
3 Awards
The trust ought to be named as the beneficiary, not the Trustee.
Answered on Nov 01st, 2012 at 4:27 PM
Civil Litigation Attorney serving Aptos, CA
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Richard E. Damon, P.C.
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One way to do it is to make the benefit payable to "the current trustee of the such and such trust."
Answered on Nov 01st, 2012 at 4:27 PM
Trusts Attorney serving Sacramento, CA
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Law Office of Victor Waid
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The Trust, as the trust is a legal receiver of assets and is the future plan, after death, as to disbursement of insurance proceeds to be distributed by the trustee, according to the trust provisions. A checking account for the trust needs to be in place to receive those proceeds on behalf of the trust, with the trustee having check writing authority on behalf of the trust.
Answered on Nov 01st, 2012 at 4:26 PM
Probate Attorney serving Newport, OR
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Minor, Bandonis & Haggerty P.C.
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Unless there are special needs beneficiaries, you are far better off making the insurance payable to individuals. If it has to go to the trust, then it is to the trustee, as trustee of the xxxtrust, under trust agreement dated yyyyy.
Answered on Nov 01st, 2012 at 4:26 PM
Generally it should be the trust if you want the money to go to the trust to be distributed according to its terms.
Answered on Nov 01st, 2012 at 3:52 PM
Tax Attorney serving Portland, OR
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Bullivant Houser Bailey PC
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The most proper way is to name the trustee, as trustee using the complete trust name. For example: "Betty Rubble, as trustee of the Flintstone Family Trust U/I/D January 1, XXXX."
Answered on Nov 01st, 2012 at 3:52 PM
The trust should be named; alternatively, the trustee can be named "as trustee of theXYZ Trust dated 1-2-3." When the check arrives, the trustee will need to open an account for the trust in order to cash?and distribute it according to the trust terms.
Answered on Nov 01st, 2012 at 3:45 PM
Gregory Thomas Taylor
The beneficiary should be the trust itself. The trustee always acts on behalf of the trust but should not be named in his/her individual capacity, as the trustee of the trust may change in the interim time period.
Answered on Nov 01st, 2012 at 3:44 PM