Legal Question in Wills and Trusts in Ohio
Life Insurance Policy
I am the sole beneficiary of my mothers life insurance policy. If my mother creates a living trust does this life insurance policy atuomatically go into that living trust, or is it contracted to me and payable upon her death??
1 Answer from Attorneys
Re: Life Insurance Policy
Life insurance is a contract. The insurance company agrees (contracts) to pay a certain amount of money to a designated beneficary in exchange for timely payments of premiums. Ownership of the policy, as well as the beneficiaries, are determined by the person "buying" the policy. Therefore, creating a living trust without giving the insurance company new instructions regarding ownership and/or beneficiaries has no effect on the insurance contract. Nothing happens automatically.
Thank you for your question. I hope this answers your concerns.
Sincerely,
Paul A. Nidich
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