§ 30-4-2-5 — Life insurance trusts

Indiana § 30-4-2-5

• Jurisdiction: Indiana
• Art. 4: TRUST CODE
• Ch. 2: Rules Governing the Creation of Trusts

Text

(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.