In Life Insurance We Trust
Are you in the process of setting up a family trust? Are you also planning on purchasing a life insurance policy and naming the trust as the beneficiary? I am seeing more trends in naming a trust as a beneficiary or even having the trust as an owner. Having a trust as an owner or a beneficiary is feasible; however discussing these options up front will make the application and underwriting process much easier.
I have had clients who have submitted life insurance applications and named their spouse as beneficiary. After their policies have been approved and sent to them, the clients tell us they recently set up a trust and want to name the trust as the owner or beneficiary. This throws a wrench in trying to activate the policy.
When you want to name the owner of the policy as the trust, the trustee needs to sign the application as the owner. There are certain documents in the application where you as the insured would sign and other documents where the owner would have to sign. In addition, some of our carriers require the first and last page of the trust or even a full copy of the trust. Knowing the trust details up front will make for an easy application and underwriting process.
The type of information we would need to submit the application would be:
· The full name of the trust
· The date of the trust
· The tax ID number of the trust
· The trustee or trustees names, addresses and phone numbers
About the author: Teri Costen has been in the life insurance business for over 20 years. She is a mother of three who enjoys working out, taking aerobic kickboxing classes, and making stained glass. Teri believes that finding the right life insurance policy helps protect your family and loved ones. You can contact Teri at 1-800-651-1953 or TCosten@Pivot.com.