If you’d like the proceeds from your life insurance or annuities to go to your Revocable Living Trust, you may be able to make that change by updating your beneficiary designation. However, before doing so, it’s important to understand the legal and financial implications.
Step 1: Speak With a Financial or Tax Advisor
Changing the beneficiary of a life insurance policy to your Trust may have tax consequences or affect estate planning strategies. Before making changes, it’s strongly recommended that you:
Consult with your financial advisor
Discuss any implications with a tax professional
These professionals can help determine if naming your trust is appropriate based on your overall financial goals.
Step 2: Request and Complete a Change of Beneficiary Form
If, after professional guidance, you decide to move forward:
Contact your insurance company or plan provider
Request a Change of Beneficiary Designation form (may also be called “Designation of Beneficiary” or similar)
Complete the form using your Trust’s information (see example below)
Sample Beneficiary Language:
“John Sample as Trustee (or his successor(s) in trust), of the John Sample Revocable Living Trust dated [Month Day, Year].”
This ensures the policy proceeds are paid into the trust and distributed according to its terms.
Important Reminders:
In many cases, this update can be done without an attorney, but you should confirm that the change fits your full estate and tax planning needs.
Each insurance provider may have its own rules and preferred language, so always check with them directly.
Be sure to store a copy of the updated beneficiary designation with your other estate planning documents.
→ Related: How Do I Fund My Trust?