How To Terminate An Irrevocable Life Insurance Trust?

  1. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    To terminate an irrevocable life insurance trust, you will need a provision in the trust that allows for that, and the assent of the trustee and beneficiaries of the policy. If this is not possible, you will need to appeal to the court system to terminate the trust. There are some conditions under which that can be possible. Check with an attorney in your state for details.
    Answered on October 29, 2013
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  2. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    Words like “trust” and “irrevocable” should make you perk up your ears.  They generally mean that to gain certain future tax advantages you are giving up control over an asset, in this case a life insurance policy.  It isn’t any different than selling a car to someone and then later wishing that you still owned it.
    Answered on August 12, 2014
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