| Alan R. Horvath, Attorney at Law |
| Frequently Asked Trust Questions |
| Phone: 209 754-5291 Fax: 209 754-5293 |
| ahorvathlaw@sbcglobal.net |
P.O. Box 81
596 Mountain Ranch Rd.
San Andreas, CA 95249
596 Mountain Ranch Rd.
San Andreas, CA 95249
What happens if a Trust is Named as Beneficiary of Insurance?
If the primary objective of the trust is probate avoidance, and there is only a single beneficiary, there is little to be
gained by not having the insurance go direct to the beneficiary, bypassing the trust altogether.
By contrast, if the trust provides for a complex distribution arrangement, naming the trust as the beneficiary of a
policy provides a single point of distribution for all benefits. The distribution instructions need only be written once
and included in the trust to control both the life insurance proceeds as well as the other trust assets. This would
be particularly appropriate where the trust is to have a significant life after the death of the individual who set it up.
If the primary objective of the trust is probate avoidance, and there is only a single beneficiary, there is little to be
gained by not having the insurance go direct to the beneficiary, bypassing the trust altogether.
By contrast, if the trust provides for a complex distribution arrangement, naming the trust as the beneficiary of a
policy provides a single point of distribution for all benefits. The distribution instructions need only be written once
and included in the trust to control both the life insurance proceeds as well as the other trust assets. This would
be particularly appropriate where the trust is to have a significant life after the death of the individual who set it up.
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