Can a Special Needs Trust be a beneficiary of a term life insurance policy?

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I have a 3rd Party inter vivos irrevocable SNT. I was wondering if that trust could be the beneficiary of the term life policy? If not, could any SNT be?

4 Attorney Answers

Best Answer
Please consult an estate planning attorney who handles special needs trusts for specific advice. The is a forum for general Q&A, and not for legal advice on individual cases.
Best Answer
Generally yes however your particular SNT document would need to be reviewed. I can't imagine that it would restrict the ability to receive life insurance funds but it could.
You may want to look at converting the term policy to a whole life policy to ensure that that the insured does not outlive the policy.
Have a trust or estate planning attorney review your documents and give you your options. It is worth spending a little bit now to make sure everything is set up correctly.
Best Answer
Yes, unless the document says no, and I agree with Mr. Green that you should consult an estate planning attorney - sometimes, term insurance is not best for SNTs.

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