Can Life Insurance Be Left To A Trust? 
Sure thing . People do it all the time . Why do they use a trust ? You certainly want to talk to an estate planning attorney about that . Get legal expert advice from a legal expert . But , I can tell you a few things as someone with many clients who have used a trust in their life insurance planning . Its a great way to keep large amounts of money out of your estate , and therefore out of the sights of the taxman . Estate tax bills can be a huge ; fortunately , legitimate legal tools such as trusts are available to minimize the bite . A number of trusts are available for use . Which one would be best , given your circumstances ? Ask your attorney . -LRB- And by the way : make sure its an attorney who specializes in estate planning . A lot of money is on the line here , and you want to make sure you get the best advice possible . Your real estate or commercial lawyer may be a good guy , but he doesnt have the specialized knowledge that an estate planning specialist has . -RRB- Remember that when you use a trust , you lose control . The trustee runs things . Thats why your choice of trustee is a key management decision . Give this a lot of thought . Ask your attorney about the legal and fiduciary responsibilities of a trustee . He or she can be liable if the policy inside the trust does not perform as outlined . This brings up the all-important function of a life insurance policy audit . On a regular basis , that policy should be reviewed to make sure it is meeting expectations . The cost , the benefit , and the guarantee period on the premium should all be verified . For example : what if a universal life product was used , but due to a price increase , the coverage will terminate 10 years earlier than scheduled ? Not a good situation . You dont want to be in a situation when the policy will have failed right when a claim is supposed to be filed . This means that your broker , your trustee , and your attorney need to buddy-up and work together to make sure your insurance trust and the policy it holds are doing their job . 