can you put a living trust as beneficary on an insurance policy?

Question

i have an pre-paid funeral expense that is listed as an insurance policy and want to confirm if i can put my living trust as beneficary

Answer 1

don't know the law in your state, dude, but in mine, a living trust ceases when I die. Thus, I couldn't add to it after I'm dead which the pre-paid policy would try to do.

try your estate as the beneficiary -- funeral expenses are deductible for estate tax purposes anyway and in most states, small estates are handled quite informally [relative petitions court to be appointed personal representative and then pays the bills from available assets].

Answer 2

Of course you can. The wording should be something along the lines of: The XYZ Trust Company, Trustee for the (Your Name) Living Trust, dated XXXXXXX. Similar wording would be for an Attorney, Family member, or other person, acting as your trustee.

If your bank trust department is named as the trustee, ask them for the wording for the change of beneficiary form they recommend.

If your Attorney is named as the trustee, ask the attorney for the wording they recommend.

If a family member, friend, or other individual is named as trustee, ask the Insurance Company for their suggested wording.

Most insurance companies will have a Change of Beneficiary Form. The form is usually divided up into several sections. One of the sections will say something like this: If your beneficiary is a corporation or a trust, fill in this section. The company I worked for has sample designations on the back of the form to assist in the preparation of the document.

Last, I would not recommend naming "your estate" as the beneficiary of any Insurance Policy, except in a very very few, and rare, circumstances. This subjects all the proceeds of the Life Insurance Policy to the probate process.

Good Luck,

Grampy

Answer 3

Yes, you can, but make sure you follow the insurer's procedures for the beneficiary designation update. They will probably want trust documentation.