Dear Clients and Friends:
Occasionally, an irrevocable trust can cause frustration…read on.
CLIENT QUESTION:
You set up an Irrevocable Trust for me about 15 years ago. Besides my house, the trust is the owner and beneficiary of my life insurance policy. The address and SS # on the policy are mine.
Recently I sent in a yearly payment. As I never received confirmation that the payment was applied to my policy, I called and just asked if the check was received. The Insurance Company said that they cannot talk to me, and only would give information to the “Trust”. Do the Trustees have to be the only persons that they will speak to?
MY RESPONSE:
Technically, YES! You are no longer the owner…. so why should they talk to you? I know that many of you will find this frustrating, although usually a small price to pay to protect your assets, including here the cash value and death benefit of the insurance. However, I know many people who have found a workaround for this, although I condone nothing. 😊
For example, if your account is online, your trustee can share the user name and password with you so that you may check the status from time to time. I even know of some clients who call the company and make-believe that they are the trustee. Heaven forbid.
