Can a trust receive life insurance for my children?

Question

As things stand, my life insurance is intended mainly to support a child who is still a minor. As things stand, I do not want a large death benefit paid in a way that forces court involvement or hands over the money too early. The reason I bought the policy may have changed after a recent family or employment event.

Soradin · Accepted Answer

A properly drafted trust can name a trustee and set rules for support and later distributions. Coverage decisions should be based on the policy contract and current values, not on a sales summary by itself. When evaluating the policy, a trust, custodial arrangement, or other state approved structure can provide an adult manager. Review beneficiary choices alongside the estate plan and the insurer's records, since the insurer generally follows the beneficiary designation it has on record.

Can a trust receive life insurance for my children?

Soradin

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