Change a Beneficiary with a Power of Attorney – Why Using a Power of Attorney to Name a Trust or Change a Beneficiary is a Great Idea
Sophisticated estate planning sometimes uses a life insurance policy in a life insurance trust. An irrevocable life insurance trust (ILIT) can be a valuable tool but it raises additional life insurance issues. One of those issues is that an irrevocable life insurance trust will have a trustee and a Power of Attorney. These matters can often become litigation with the life insurance company – we have decades of expert experience in these issues.
That Power of Attorney must be broad enough to handle all of the expected and unexpected needs of the life insurance trust. Because some of these complexities vary state to state, it is unrealistic to expect that your Power of Attorney will be effective, everywhere.
We urge the proper drafting and review of a Power of Attorney, keeping in mind the state where the life insurance trust is located and the state where the life insurance company is located.
Even then, when a life insurance trust approaches the time of benefits being paid, a prudent review of all the paperwork should be conducted by an experienced attorney. This is the last moment to try to avoid any issues arising with the life insurance company – especially if the life insurance policy was purchased in the last two years, and the benefits may be needed right away, nothing should be left undone in making sure that the life insurance company will pay.
We can review the Trust and Power of Attorney documents for you – call for a consultation.