§ 38.2-3112. Designation of testamentary trustee as beneficiary.
A. A life insurance policy may designate as beneficiary a trustee or trusteesnamed or to be named by will if the designation is made in accordance withthe provisions of the policy and the requirements of the insurer issuing thepolicy.
B. A trustee may qualify immediately after probate of the will. Uponappointment and qualification of a trustee, the proceeds of the insuranceshall be paid to the trustee to be held and disposed of under the terms ofthe will. If there is no valid will appointing a trustee or if the trustprovided by the will is invalid for any other cause, the designation of atrustee as beneficiary of the policy shall be void. If no qualified trusteemakes claim to the proceeds from the insurer within one year after the deathof the insured, or if satisfactory evidence is furnished to the insurerwithin the one-year period showing that no trustee can qualify to receive theproceeds, payment shall be made by the insurer to the executors,administrators or assigns of the insured, unless otherwise provided for bythe owner of the policy, if the owner is other than the insured, or by theinsured by agreement with the insurer.
C. The proceeds of the insurance as collected by a trustee shall not besubject to debts of the insured nor to estate taxes to any greater extentthan if the proceeds were payable to any other named beneficiary other thanthe estate of the insured.
D. For purposes of trust administration, the proceeds shall be subject to thecourt's jurisdiction over the trust as in any other testamentary trust, butthe proceeds shall not be considered as payable to the estate of the insured.
E. This section does not authorize payment of policy proceeds to anytestamentary trustee who is not otherwise qualified to act as a testamentarytrustee. A qualified substitute trustee may be appointed to perform the trustprovided by the will.
F. Enactment of this section shall not be construed as casting any doubt uponthe validity of any previous life insurance policy beneficiary designationsnaming trustees of a trust established or to be established by will.
G. As used in this section, "life insurance policy" shall include othertypes of contracts under which proceeds become payable on the death of thetestator to the end that interests other than those described as "lifeinsurance" may be made payable or transferred to a trustee named or to benamed in a will in the same manner and to the same extent they could be madepayable to or transferable to any other person.
(1968, c. 524, § 38.1-408.1; 1968, c. 553, § 38.1-442.1; 1986, c. 562.)
§ 38.2-3112. Designation of testamentary trustee as beneficiary.
A. A life insurance policy may designate as beneficiary a trustee or trusteesnamed or to be named by will if the designation is made in accordance withthe provisions of the policy and the requirements of the insurer issuing thepolicy.
B. A trustee may qualify immediately after probate of the will. Uponappointment and qualification of a trustee, the proceeds of the insuranceshall be paid to the trustee to be held and disposed of under the terms ofthe will. If there is no valid will appointing a trustee or if the trustprovided by the will is invalid for any other cause, the designation of atrustee as beneficiary of the policy shall be void. If no qualified trusteemakes claim to the proceeds from the insurer within one year after the deathof the insured, or if satisfactory evidence is furnished to the insurerwithin the one-year period showing that no trustee can qualify to receive theproceeds, payment shall be made by the insurer to the executors,administrators or assigns of the insured, unless otherwise provided for bythe owner of the policy, if the owner is other than the insured, or by theinsured by agreement with the insurer.
C. The proceeds of the insurance as collected by a trustee shall not besubject to debts of the insured nor to estate taxes to any greater extentthan if the proceeds were payable to any other named beneficiary other thanthe estate of the insured.
D. For purposes of trust administration, the proceeds shall be subject to thecourt's jurisdiction over the trust as in any other testamentary trust, butthe proceeds shall not be considered as payable to the estate of the insured.
E. This section does not authorize payment of policy proceeds to anytestamentary trustee who is not otherwise qualified to act as a testamentarytrustee. A qualified substitute trustee may be appointed to perform the trustprovided by the will.
F. Enactment of this section shall not be construed as casting any doubt uponthe validity of any previous life insurance policy beneficiary designationsnaming trustees of a trust established or to be established by will.
G. As used in this section, "life insurance policy" shall include othertypes of contracts under which proceeds become payable on the death of thetestator to the end that interests other than those described as "lifeinsurance" may be made payable or transferred to a trustee named or to benamed in a will in the same manner and to the same extent they could be madepayable to or transferable to any other person.
(1968, c. 524, § 38.1-408.1; 1968, c. 553, § 38.1-442.1; 1986, c. 562.)
§ 38.2-3112. Designation of testamentary trustee as beneficiary.
A. A life insurance policy may designate as beneficiary a trustee or trusteesnamed or to be named by will if the designation is made in accordance withthe provisions of the policy and the requirements of the insurer issuing thepolicy.
B. A trustee may qualify immediately after probate of the will. Uponappointment and qualification of a trustee, the proceeds of the insuranceshall be paid to the trustee to be held and disposed of under the terms ofthe will. If there is no valid will appointing a trustee or if the trustprovided by the will is invalid for any other cause, the designation of atrustee as beneficiary of the policy shall be void. If no qualified trusteemakes claim to the proceeds from the insurer within one year after the deathof the insured, or if satisfactory evidence is furnished to the insurerwithin the one-year period showing that no trustee can qualify to receive theproceeds, payment shall be made by the insurer to the executors,administrators or assigns of the insured, unless otherwise provided for bythe owner of the policy, if the owner is other than the insured, or by theinsured by agreement with the insurer.
C. The proceeds of the insurance as collected by a trustee shall not besubject to debts of the insured nor to estate taxes to any greater extentthan if the proceeds were payable to any other named beneficiary other thanthe estate of the insured.
D. For purposes of trust administration, the proceeds shall be subject to thecourt's jurisdiction over the trust as in any other testamentary trust, butthe proceeds shall not be considered as payable to the estate of the insured.
E. This section does not authorize payment of policy proceeds to anytestamentary trustee who is not otherwise qualified to act as a testamentarytrustee. A qualified substitute trustee may be appointed to perform the trustprovided by the will.
F. Enactment of this section shall not be construed as casting any doubt uponthe validity of any previous life insurance policy beneficiary designationsnaming trustees of a trust established or to be established by will.
G. As used in this section, "life insurance policy" shall include othertypes of contracts under which proceeds become payable on the death of thetestator to the end that interests other than those described as "lifeinsurance" may be made payable or transferred to a trustee named or to benamed in a will in the same manner and to the same extent they could be madepayable to or transferable to any other person.
(1968, c. 524, § 38.1-408.1; 1968, c. 553, § 38.1-442.1; 1986, c. 562.)
