Dealing With Trusts

When trusts are involved, there are basic rules that apply for applications as well as additional requirements with most carriers.



The wording on the trust and the application, must match. For example:

The John and Jane Doe Living Trust Dtd 1-1-2001

The John and Jane Doe Living Trust Dtd 1-1-2001 amended 1-1-2008



If the trust is the owner, additional requirements are required. Requirements vary from carrier to carrier, but the most common among carriers are either some type of Verification of Trust form, or actual trust documents. I am going to highlight the requirements for our two most used carriers.

Aviva: Put a Trust Verification form in effect on October 1, 2008. This is mandatory on all Annuity and Life Insurance products. This will hold up issue if not received with the policy. In addition, if a Trust is the primary beneficiary, this doc will also be required, however, this can be a delivery requirement. This form does have to be signed by the trustee(s). You will no longer need to send copies of the trust to the carrier, however, they do reserve the right to ask for trust docs on an individual basis.

Legacy Marketing Group: The carriers under the Legacy umbrella, Investors Insurance, Washington National, American National and OM Financial; all require a Verification of Trust Agreement when the trust is the owner. They also require the face page, trustee page and signature page of the trust docs. If the trust is the primary beneficiary they do not require the VTA or copies of the trust, however, all of these cases must go thru compliance review and this can result in a request for the documents, so the suggestion is to send them in. If family files (ex: one app for a husband, another app for a wife) are received at the same time and the Annuitant(s)/Owners(s) are the same and they are with the same carrier (both with IIC) they will accept one original VTA for all of the family files. However, if they are different carriers, each carrier has its own specific ppwk, so you would need ppwk for each carrier. If the Annuitant(s)/Owner(s) are not the same, an original VTA is required for each case.

If you have questions on wording for any application or what forms are required, don't hesitate to call our office and a member of our team will be more than happy to help you!

Happy Writing!