[WSBAPT] life insurance question

[Heather de Vrieze]

What about a TEDRA Agreement with all daughters as heirs, beneficiaries of the Trust, owners of the policy?

Heather

Heather S. de Vrieze
Attorney-at-Law
[cid:image001.jpg at 01D5696E.76E33B20]
3909 California Avenue SW
Seattle, WA 98116-3705
(206)938-5500
heatherd at westseattlelaw.com<mailto:heatherd at westseattlelaw.com>
www.westseattlelaw.com<http://www.westseattlelaw.com/>
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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Kate Szurek
Sent: Thursday, September 12, 2019 11:35 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] life insurance question

On advice of counsel and for the purpose of removing life insurance from her taxable estate, mom gifted her life insurance policy to her three daughters.  Broker made the change of ownership.  15 years go by.  Mom dies.  Daughters are clearly the owners (that fact is not being questioned), but unfortunately the beneficiary designation names mom's RLT as beneficiary.  Oops.

Question:  If the successor trustee of mom's trust disclaims the proceeds on behalf of the trust, what happens?  My first thought was that, lacking a beneficiary, the proceeds would pass to mom's estate.  But I'm doubting this result, because mom had no incidents of ownership.  Is it at all possible that the proceeds should instead pass to the owners/daughters?  Or is it the fact that mom is the insured that governs where the proceeds go in the absence of a beneficiary (i.e., to her estate)?

Any insights will be greatly appreciated!!

Kate

Kate Szurek, J.D., LL.M. (in Taxation)
kate at skagitlaw.com<mailto:kate at skagitlaw.com>

[SkagitLaw_Signature (2)]
Skagit Law Group, PLLC
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Mount Vernon, WA  98273
360.336.1000
360.336.6690 (fax)
http://www.skagitlaw.com<http://www.skagitlaw.com/>


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