This Life Insurance Trust agreement is a trust agreement whereby the owner of a life
insurance policy names a beneficiary to receive the proceeds of the life insurance policy
upon the owner's death. The trust agreement names a trustee to hold the proceeds of
the policy in the event of the owner's death for distribution or in trust if a named
beneficiary is under a certain age designated by the owner of the policy. This document
contains numerous standard provisions that are commonly found in a life insurance trust
and may be customized to fit the particular needs of the individual. This should be used
by owners of life insurance policies that want to establish a trust.
LIFE INSURANCE TRUST
THIS LIFE INSURANCE TRUST AGREEMENT (hereinafter the “Trust
Agreement”) made this ____ day of _____________, _______, by and between
_____________________ (hereinafter the "Grantor"), and _____________________
(hereinafter the "Trustee").
WHEREAS the Grantor is the owner of a certain life insurance policy (hereinafter
the “Policy”) on his/her life through _______________________ [NAME OF INSURANCE
COMPANY WHICH HOLDS THE POLICY] (hereinafter the “Company”), a copy of which is
annexed hereto as Schedule “A”;
AND WHEREAS the Grantor and has named the Trustee as beneficiary of the
AND WHEREAS the Grantor by entering into this Trust Agreement, is desirous
to set forth and the power and duties granted to the Trustee by the Grantor pursuant to this
TERMS OF TRUST
1.01 The Grantor hereby acknowledges that the Trustee shall not at any time or times
be obligated to pay any of the premiums that may be due or owing in respect of the Policy.
The Grantor hereby further acknowledges that the Trustee shall have no obligation to notify
any party or parties of the failure of payment of such premiums that may be due or owing and
that the Trustee shall have no liability or responsible for the payment of such premiums.
1.02 The Grantor hereby acknowledges that the Trustee shall not at any time or times
be responsible or liable for the keep of the Policy save and except to receive any payments that
may become due and owing to the Trustee pursuant to the terms of the Policy or in the event
the Trustee may be required to hold or disburse the proceeds of the Policy subject to the terms
and conditions of this Trust Agreement.
1.03 In the event of the death of the Grantor, the Trust shall immediately or as soon as
reasonably possible, obtain the proceeds of the Policy. The Trustee shall carry out his/her
duties to the best of his/her abilities pursuant to the terms and conditions of this Trust
1.04 The Trustee shall have the power to defend or enter into any lawsuit in respect of
the Trust Agreement, provided that the Trustee’s costs for doing so and any attorney fees and
costs associated therewith are paid to the Trustee in advance of the commencement of such
1.05 In addition to any inherent, implied, or statutory powers granted to trustees
generally, the powers set forth in ___________________ [STATE] General Statutes Sections
___________ [STATUTE SECTION NUMBERS] are incorporated by reference and granted
to the Trustee, subject to the restrictions of ___________________ [STATE] General Statutes
Sections ___________ [STATUTE SECTION NUMBERS]. The Trustee shall not be required
to make or file an inventory or accounting to any Court, or to give Bond, but the Trustee shall,
at least annually, furnish to each beneficiary a statement showing property then held by the
Trustee and the receipts and disbursements made.
2.01 The Trustee shall hold the proceeds of the Policy in trust for the absolute use and
benefit of the living child[ren] of the Grantor ________________ [NAME(S) OF
CHILD(REN)] (hereinafter the “Beneficiary”) and any children of the Grantor born after the
execution of this Trust Agreement.
2.02 In the event the Beneficiary has not reached the age of ________ [AMOUNT IN
WORDS](____ [AMOUNT IN NUMERALS]) years upon the death of the Grantor, the
Trustee shall keep such Beneficiary’s share held in trust, until such time the Beneficiary
reaches the age of ________ [AMOUNT IN WORDS](____ [AMOUNT IN NUMERALS]).
The Trustee shall hold and manage the funds for the benefit of the Beneficiary as follows: in
the event the income from this Trust and, if net income be at any time insufficient, so much of
the principal of this Trust as may be deemed necessary, in the sole discretion of the Trustee
(taking into account all other sources of income or support of the Beneficiary of which the
Trustee has knowledge), may be either paid to or expended on behalf of the Beneficiary
(whichever in the Trustee's sole discretion is deemed most appropriate) in order to ensure the
support, maintenance, health and education of the Beneficiary.
2.03 In the event the Beneficiary has reached the age of ________ [AMOUNT IN
WORDS](____ [AMOUNT IN NUMERALS]) upon the death of the Grantor, the Trustee shall
pay and distribute such Beneficiary’s s