Can life insurance go to a trust?

Yes, life insurance can be placed into a trust. When life insurance is held in a trust, the policy proceeds are paid directly to the trust upon the policyholder's death. The trust then distributes the proceeds to the beneficiaries according to the terms of the trust agreement. There are several benefits to placing life insurance in a trust, including:

1. Estate planning: Placing life insurance in a trust can help ensure that the policy proceeds are distributed according to the policyholder's wishes and can help minimize estate taxes.

2. Asset protection: Holding life insurance in a trust can protect the policy proceeds from creditors, lawsuits, and other potential liabilities.

3. Control: Placing life insurance in a trust allows the policyholder to maintain greater control over how the proceeds are distributed, including specifying when and how much the beneficiaries should receive.

4. Privacy: Placing life insurance in a trust can help keep the details of the policy and its proceeds private, as the trust agreement is not a matter of public record.