[WSBAPT] SNT as beneficiary of ILIT and ways to avoid disclosing trust to beneficiary

[Chandra Lewnau]

Clients are creating an ILIT with their 19-year-old disabled child as the
beneficiary. They do not want the child to know anything about the large
insurance policy she may be the beneficiary of someday. Based on my
understanding of the trust reporting requirements, they can waive the
trustee's duty to notify her of the existence of the trust, but can't waive
the trustee's duty to keep the beneficiary reasonably informed about the
trust.

Is there any reason I can't name a revocable SNT as the beneficiary of the
ILIT?

If I do that, can the trustee of the ILIT avoid providing any information
about the ILIT to the beneficiary? The Trustee of the SNT could be kept
reasonably informed, and I believe as long as the SNT is revocable, there
is no need to inform the child beneficiary about that either.

Any thoughts or suggestions greatly appreciated.

Best regards,

Chandra M. Lewnau
Attorney at Law
Direct Line 253.237.7150
chandra at lewnaulaw.com
This email address is used for mailing list purposes only, for faster
response,
email me at clewnau at eldercounselor.com
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