Should life insurance be transferred to a living trust?

Life insurance normally pays under its beneficiary form. A revocable trust may be named as beneficiary in some plans. But ownership and beneficiary changes can have tax, creditor, and administration effects.

General information

• The will does not override a valid policy beneficiary form.
• Naming an person, trust, or estate produces different results.
• Irrevocable insurance trusts are a separate advanced topic.

Service steps to consider

1. Request the current beneficiary form from the insurer.
2. Checking primary and contingent beneficiaries.
3. Get expert advice before changing policy ownership or using a trust beneficiary.

Quick check

• Is the asset in the trust's name?
• Did the bank or county record the change?
• Did I save proof?

How Complete Wills can help

Complete Wills' trust-based package includes a revocable living trust, schedule of assets, certification of trust, pour-over will, power of attorney, health-care directive, and HIPAA authorization. The service can prepare documents from customer answers. But the customer remains responsible for signing and for properly funding the trust. Customer support can explain website features and questionnaire fields, but it cannot choose documents, people, distributions, or legal terms, interpret a completed document, or explain how the law applies to a person's facts. Only a separately engaged licensed attorney may provide legal advice within the attorney's engagement.

Important limits

• A trust controls only property legally connected to it. A schedule alone may not change title.
• Get legal, tax, or financial advice before transferring retirement accounts, business interests, mortgaged property, foreign property, or assets with transfer restrictions. This article gives general information only. A licensed attorney can explain how state law applies to a specific estate plan or document.