How does the death of a beneficiary of a formal revocable trust affect the insurance coverage?
Like informal revocable trusts, the six-month grace period does not apply to the death of a beneficiary named in a formal revocable trust account. However, the terms of the formal revocable trust may provide for a successor beneficiary or some other redistribution of the trust deposits. Depending on these terms, the insurance coverage may or may not change.
Related Questions
- How does the death of a beneficiary of an informal revocable trust (e.g., POD account) affect insurance coverage?
- How does the death of a beneficiary of a living trust (formal revocable trust) affect the insurance coverage?
- How does the death of a beneficiary of a POD account (informal revocable trust) affect insurance coverage?
