What is an insurance trust and how does it work?

An insurance trust is a legal tool that can be used to protect assets in Washington. It is a type of trust that can be created to own and manage various types of insurance policies. The trust is typically set up so that the insured person, who is usually the grantor (creator) of the trust, is not the direct owner or beneficiary of the policy. Instead, the person creates the trust and names another party, usually a trusted family member or friend, as trustee. The trustee has a fiduciary responsibility to act in the best interests of the policy owner and manage the policy. This includes making sure that all premiums are paid, filing any applicable paperwork, and ensuring that the policy stays up to date and compliant with the law. The trustee can also take care of any claims that may arise. The insurer of the policy is typically not aware of the trust and only sees the trustee as the policy owner. This is beneficial as it allows the policy owner to maintain confidentiality and privacy in regards to their policy ownership. In addition, an insurance trust can help to protect assets from creditors and lawsuits if the policy owner gets sued. This is because the assets in the trust are not considered part of the policy owner’s estate and therefore cannot be taken in the event of a lawsuit or other legal action. In short, an insurance trust is a way to protect assets while still providing protection through insurance. It is important to consult with a qualified attorney in Washington to ensure that your trust is set up properly and in accordance with the law.

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What is an insurance trust and how does it work?

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