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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.

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15y 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.


Are proceeds of a life insurance policy included in the living trust assets if the named beneficiary of the policy is an individual?

No, the proceeds of a life insurance policy are not included in the living trust assets if the named beneficiary is an individual. Life insurance benefits typically pass directly to the designated beneficiary outside of the trust, regardless of whether the policyholder has a living trust. However, if the trust is named as the beneficiary of the policy, then the proceeds would be included in the trust assets.


Can you name a trust as a beneficiary?

Yes, you can name a trust as a beneficiary of a financial account or insurance policy.


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?

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How does a life insurance trust work?

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Who recieves the benefits or money from a life insurance policy upon the death of the insured?

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What happens if you find additional insurance policies where beneficary listed is absolutely excluded in trust?

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Does home insurance cover items in the garage?

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