A life insurance trust generally is established by naming the insurer as the beneficiary of a life insurance policy, for the benefit of named trust beneficiaries.

Question

Quizplus · Accepted Answer

A life insurance trust is established by the policy owner transferring the ownership of the life insurance policy to the trust, not by naming the insurer as the beneficiary. The trust itself becomes the policy owner and beneficiary, for the benefit of the trust's named beneficiaries.

A Life Insurance Trust Generally Is Established by Naming the Insurer