Yes, a trust can be the beneficiary of a life insurance policy, upon which the proceeds will be distributed according to the terms of the trust upon the death of the insured. Take care that the trust is up to date and active at the time of death. A trust can also be the owner of a policy.
The general purpose of an irrevocable life insurance trust is to own the policy outside the estate to insulate the death benefit proceeds from federal and state estate taxation. The irrevocable life insurance trust has trust beneficiaries, who receive the death benefit proceeds from the irrevocable life insurance trust.
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The general purpose of an irrevocable life insurance trust is to own the policy outside the estate to insulate the death benefit proceeds from federal and state estate taxation. The irrevocable life insurance trust has trust beneficiaries, who receive the death benefit proceeds from the irrevocable life insurance trust.