by lajones57 » Fri Jun 19, 2009 12:26 am
I am the beneficiary of a life insurance policy. My step mother put the policy into an irrevocable trust. She is mad at me and told her son not to give me the money from the policy after her death. She can't remove me as a beneficiary, can she legally not give me the money? My share is 1 million dollars.
Posted: Fri Jun 19, 2009 05:23 am Post Subject:
Hi lajones57
If you are the designated beneficiary and the policy is put into an irrevocable trust, you will not be denied the benefits. An irrevocable trust is a trust that cannot be changed once the documents have been signed. So, don't worry about the money OP, it will come to you.
Posted: Fri Jun 19, 2009 05:48 am Post Subject:
Hi lajones57,
Why the money is in irrevocable trust? Are you not adult?
I guess your brother is the appointed executor of your stepmother's will. Is he in the trust too?
Posted: Fri Jun 19, 2009 10:19 am Post Subject:
Hi lajones57,
Well, just as someone said the money should come to you naturally. But as I've seen certain instances, I do question things at times.
Did your step mom ever talk of moving into a probate court?
Steven
Posted: Fri Jun 19, 2009 11:26 am Post Subject:
I doubt that you are the beneficiary of the policy. The trust is probably the owner and the beneficiary of the policy. Your step-mom can't do anything because she doesn't own the policy. You are probably a beneficiary of the trust.
The terms of the trust probably dictate when you get the money. If her son is the trustee, he may have some discretion as to when you will get your money. It depends on the terms of the trust.
Posted: Sat Jun 20, 2009 04:11 am Post Subject:
Thank you for your answer. She has moved the policy from one irrevocable trust to another and now states, in writing, that she does not want me to benefit from the insurance policy. Does she have the right to do this?
This was in left in my inbox.
Well, lajones57 this 'writing' that you are referring to is the will right?
I have attached 2 portions of the irrevocable trust agreement I found in ilrg.com/forms/irrev-trust.html where it is mentioned that if you are the beneficiary in the trust, you are bound to receive the benefits. In the absence (unfortunate death) of the beneficiary it might go to a secondary beneficiary if mentioned or will finally go to the estate.
Check attachment
Hope I could help :)
Posted: Sat Jun 20, 2009 06:20 am Post Subject: Trust agreement
Thank you for the attachments and your answer. She attached to the "new" trust a rambling letter and in that she stated that she wants my brother to do everything possible so that I do not get a dime. I wonder how she could move the life insurance from one irrevocable trust to another. My children are also named as beneficiaries if I die before my step mother. I have not seen her will but I am certain I am not in it.
Posted: Sat Jun 20, 2009 06:22 am Post Subject:
Hi lajones57,
I'd request you to come and post in the community. It'd help you in getting responses from different experts.
However,
She has moved the policy from one irrevocable trust to another
How did she change her policy from one irrevocable trust to another? The word irrevocable suggests that it can't be amended without the accent of the involving parties.
Okay, now, did she dropped the earlier policy and took out a new one and put it with the new trust?
Please answer to my queries so that we can help you better.
Posted: Sat Jun 20, 2009 06:23 am Post Subject: Trust agreement
Are the attacments you sent to me - law?
Posted: Sat Jun 20, 2009 06:26 am Post Subject: Trust Agreement
It is the same insurance policy. She created a new trust and moved it to the New Life Insurance Trust. The other (original) trust still exist. In the new trust she does not want me to benefit from the insurance policy.
Posted: Sat Jun 20, 2009 06:34 am Post Subject:
Which state are you from?? Does your state allow decanting of asset from one trust to another? Who is the beneficiary under the new trust?
Most importantly, who is the trustee?
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