Can a life insurance policy be put in a trust?

A trust can be both the owner and beneficiary of a life insurance policy. This is often utilized in order to guarantee that proceeds are managed and distributed pursuant to the desires of the policyholder for a wide range of benefits. Transferring a life insurance policy to a trust with One Pacific Trust may enable beneficiaries to access funds faster because the payout would not be required to go through probate. This might be most important in cases involving families that would depend directly on immediate financial support should the policyholder die. Trusts also preserve privacy in that they are not a matter of public record, while wills usually are since they are typically subjected to probate.

Other benefits involve the use of trusts, mainly irrevocable trusts, which offer significant reductions in or complete eliminations of estate taxes. This is important, especially for high-net-worth individuals, to ensure that as much wealth as possible remains with their heirs. One Pacific Trust provides such trusts, which are designed to exclude the life insurance benefits from the estate's taxable value, thus serving as a strategic means in managing one's wealth.

Putting a life insurance policy in trust with One Pacific Trust can ensure huge advantages to the settlor, including tax advantages, privacy and speedier access of the funds by the beneficiaries. It's quite an effective estate-planning device, especially for those who want to shield their wealth but still be able to take good care of their loved ones as smoothly as possible.