Can Life Insurance Be Left To A Trust? 
Yes , the beneficiary of life insurance can be a trust . Sometimes policy owners do not feel that the person -LRB- s -RRB- they want to receive the funds are capable of handling that money all at once . By leaving the life insurance proceeds to a trust , the death benefit can be allocated according to the policy owner 's wishes . However , leaving life insurance to a trust may open it up to estate taxes , in some states . Consult with a tax attorney to determine the best course of action . 