What Is A Life Insurance Trust? 
A life insurance trust is an irrevocable , non-amenable trust that is set up for the purpose of being owner and beneficiary of one or more life insurance policies . A life insurance trust generally exempts the life insurance policy from estate tax . The trust also can spell out how the Trustee should manage the death benefit so it best serves the needs of specified minors . Before deciding to set up a life insurance trust you should consult a reputable life insurance agent and lawyer . Some things to consider are that the Insured person can not be the Trustee , and only the Trustee can change the beneficiary . Also , the Insured person can not borrow from the life insurance policy . 