Life Insurance Trust

By: Martin M. Shenkman, CPA, MBA, JD

A trust is a contractual arrangement which governs and directs a person, called a trustee, who manages the trust the beneficiary who benefits from the trust. An insurance trust is a trust that owns insurance, typically on the grantor's life. The grantor (also called settlor or trustor) is the person who sets up the trust. Trusts are used to own life insurance to keep the insurance out of the grantor's taxable estate, provide professional management of the trust assets (the insurance and then its proceeds) and to assure who the people will be to benefit from the trust. This is one of the most commonly used trusts.

Our Consumer Webcasts and Blogs

Subscribe to our email list to receive information on consumer webcasts and blogs, for practical legal information in simple English, delivered to your inbox. For more professional driven information, please visit Shenkman Law to subscribe.

Ad Space