Beneficiaries only receive distributions from an irrevocable life insurance trust when the Grantor dies. The Trustee purchases an insurance policy with you as the insured and the trust as the owner of the policy. In most cases, the trust will also be the beneficiary of the policy. When the insurance benefit is paid after your death, the Trustee will collect the funds, make them available to pay estate taxes and other expenses, then distribute them to the Trust Beneficiaries according to your instructions. Not if you want the tax advantages we've explained.
Some people name their adult children as trustees.
Others choose a bank or trust company because of their experience. If someone else, like your spouse or adult child, owns an insurance policy on your life and dies first, the policy will be included in his or her taxable estate. Moreover, if someone else owns the policy, you lose control. This person could name another beneficiary, take the cash value, or even cancel the policy, leaving you with no insurance. You probably trust this person now, but there could be problems later if you were to have a disagreement.