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This is an estate for the wife. The wife had a couple of insurance policies. The policies named the husband as trustee of the living trust as beneficiary of the policies, i.e., John Smith as Trustee of the Smith Trust utd 07/15/98.
As the spouse is not directly named as beneficiary of the policy does this qualify for the marital deduction?
If not, I take it the proceeds from the policy become trust assets and are eligilbe for the A-B-C subtrust split. Is this correct?
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| I think you should handle like any other property that would pour over to a trust, whether under Will or otherwise (annuity beneficiary, etc.).
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| Unless the beneficiary designation was in error, the proceeds are assets of the Trust. The sub-trusts are then funded ( including the Marital Trust ) in accordance with the formula in the Trust Agreement.
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| Life insurance policies are beneficiary specific, much like IRAs an other retirement plans. You have to go by the beneficiary designation.
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