What is a life insurance trust?

A life insurance trust is a specialized type of trust set up to provide benefits to the beneficiaries of a life insurance policy. This type of trust is commonly used in estate planning in Massachusetts. A life insurance trust is funded with the proceeds from a life insurance policy. When the insured individual passes away, the trust will receive the insurance money and then use that money to provide the beneficiaries with the desired benefits. This type of trust is set up in such a way that all of the trust assets are only accessible to the trust beneficiaries, and are not subject to the claims of creditors or other third parties. A life insurance trust can be used for many purposes, such as providing financial security to the beneficiaries, investing in stocks and bonds, or paying off taxes and debts. This trust can also be used to provide for children after the passing of a parent or to provide for other family members who may be unable to care for themselves. In conclusion, a life insurance trust is a popular estate planning tool in Massachusetts. It is a way to ensure that the proceeds of a life insurance policy are put to good use for the benefit of the beneficiaries.

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What is a life insurance trust?

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