Can Life Insurance Be Owned By A Trust? 
Sure can . Youve got some good information from the other folks posting on your question . In addition , get a hold of a good estate planning attorney , and he/she will tell you everything else you need to know . Now let me tell you why I wish no one would ever have to use a trust ! I personally have a huge problem with the estate tax . I really think the government has no right to seize a significant part of a familys wealth . It is not their job to cut rich people down to size and redistribute their wealth . Such a practice is not only unfair to the people who have achieved fame and fortune . It also deprives others of the ambition and incentive to do the same . The idea that there is a fixed amount of money to be made , and opportunities to be pursued , is blatantly wrong . The world could and should sustain millions and millions of people making it big . It is up to human ingenuity and creativity to find ways to do it . Government regulation of wealth restrains his growth . It holds us back . So yes : people with an estate tax exposure should definitely get a trust and preserve as much of their estate as possible for the next generation . Hopefully the day will come soon when nobody has this unnecessary liability . And by the way : I am taking this position as a person who sells a lot of life insurance for estate preservation . I would gladly forgo those sales in favor of a justifiable tax policy . I could still make a lot of money selling life insurance to protect the widows and orphans ; to help business owners get bank loans and fund buy-sell agreements ; and to set up policies on their kids . 