Life insurance trusts
Sec. 5. (Life Insurance Trusts)
Proceeds of life insurance policies heretofore made payable to a
trustee or trustees named as beneficiary or hereafter to be named
beneficiary under an inter vivos trust shall be paid directly to the
trustee or trustees and held and disposed of by the trustee or trustees
as provided in the trust agreement or declaration of trust in writing
made and in existence on the date of death of the insured, whether or
not such trust or declaration of trust is amendable or revocable or
both, or whether it may have been amended, and notwithstanding the
reservation of any or all rights of ownership under the insurance
policy or annuity contract; subject, however, to a valid assignment of
any part of the proceeds. It is not necessary to the validity of such
trust agreement or declaration of trust that it be funded or have a
corpus other than the right, which need not be irrevocable, of the
trustee or trustees named therein to receive such proceeds as
beneficiary. A policy of life insurance or annuity contract may
designate as beneficiary a trustee or trustees named or to be named
by will if the designation is made in accordance with the provisions
of the policy or contract whether or not the will is in existence at the
time of the designation.
(Formerly: Acts 1971, P.L.416, SEC.3.)
Last modified: May 27, 2006