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What if a life insurance policy is left to a trust and the trust is dissolved would it naturally go to his wife?
Wiki User
∙ 14y ago
it would fall back to his estate. as long as the wife inherits the estate she will get it, but the amount will then be taxable. if she was the beneficiary of the policy or if the trust was still solvent the money would be tax free.
Wiki User
∙ 14y ago
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If you have a living trust and a umbrella insurance policy can the trust be sued.?
If you have a living trusts and an umbrella insurance policy can the trust be sued in an auto accident.
Is a trust funded by life insurance policy after death of trustor?
A life insurance policy is an excellent way to fund a trust. Any way of placing necessary funds into the trust are acceptable. If you have cash and wish to fund it with cash this is fine. Life insurance is a good way to fund a trust because you can pay premiums and be assured that the money will be there when you die to fund a trust that you want to set up for someone.
You are a beneficiary of a life insurance policy which is in an irrevocable trust your step mother left instructions that you are not to receive any money from it can she do that?
Your step mother can only change the beneficiary on the life insurance policy if she is the owner of the policy or if she is the trustee of the trust. If she's the trustee then she would need to have the authority to make changes on the insurance policy set forth in the trust document. Otherwise, she cannot make changes in the policy. You haven't provided enough information for a more detailed answer such as who owns the policy and where your step mother "left" those instructions or how she is involved at all.
What is the use for an insurance trust?
The main use for an insurance trust is that it will reduce the size or even eliminate any estate taxes that one may have - it's mainly for those who may have a large life insurance policy.
How does a life insurance trust work?
A life insurance trust is used to remove the assets and death benefit of the life insurance policy out of the insured's estate for estate tax purposes. If the insured were to remain the owner of the policy, the policy procedes would be estate taxable at the time of death. This is a non-issue if your assets are less the the allowable estate tax limits.
Who recieves the benefits or money from a life insurance policy upon the death of the insured?
The person, company or trust that is specified under "Beneficiaries" section in the insurance policy will receive the life insurance benefits. If the beneficiaries are more than one, the benefit is split according to policy details, or policy schedule pages.
What happens if you find additional insurance policies where beneficary listed is absolutely excluded in trust?
In order to find a trust with life insurance proceeds the trust must be named as the beneficiary of the insurance policy. Then the trust documents specify what the funds are used for that are in the trust. If there are other life insurance policies that are still active and have other individuals named as the beneficiaries then the money from those policies cannot be placed into the trust and will be paid directly to the current beneficiary listed with the insurance company. The trust will have no claim whatsoever on these policies. It could be that these policies had their beneficiary changed when the trust was set up and the trust is the current beneficiary of them as well and he just didn't put the change form in the policy. Whatever is on record with the insurance company will be the person that the benefits are paid to no matter what.
Does home insurance cover items in the garage?
Usually. Just read your policy if you can't trust your agent.
How can you create a trust deed that would take in an insurance policy having your children as beneficiaries?
Only in the Married Women Property Act policy, you need to make a trust and your wife and your children will be beneficiaries only. But you can not surrender or assign this policy to any one.
What is the valuation of a life insurance policy for gift tax purposes?
For gift tax purposes, advisors regularly recommend that an insured who owns a policy in his own name transfer the policy to a new irrevocable life insurance trust (ILIT) to remove the policy from the insured's gross estate.
If you are deemed mentally incompetant by a dr will your life insurance pay out your policy to your family?
If it is a standard Life Insurance product, then that will have no bearing on whether or not it will pay. However, I would suggest transfering to joint ownership of the policy, so that the policy is owned by you and someone that you trust.
Should a life insurance policy be placed within one's trust to avoid probate?
It is usually not necessary to put ownership of Life Insurance into your living trust. I normally recommend that the policy be kept outside the trust as the proceeds will pass without probate. Discuss the tax considerations of who should be the owner with a tax professional familiar with estate taxes. I normally recommend that your spouse (if married) be the principal beneficiary of the insurance with your living trust as the contingent or secondary beneficiary. This way, if your spouse precedes you in death, the policy will pay proceeds to the trust which will distribute the proceeds with the rest of your estate exactly as you have planned without probate.
