Re: Withdrawal rights and life insurance trust

[JudithE]

Re: Withdrawal rights and life insurance trust

I was the beneficiary of an irrevocable life insurance trust but after several months, signed an amended trust dissolving my status as beneficiary.

My question: when the first policy payment was made, I was the beneficiary and it is my understanding that I should have received a letter notifying me of my withdrawal rights. Am I correct?

 

[HappyWanderer]

Yes, but I don't think that affects your rights. It is to make sure the government accepts the money as a gift outside of the grantor's control.

 

[JudithE]

I’m still wondering if I have the right to withdraw the money gifted to the trust when I was still beneficiary?

 

[HappyWanderer]

When you signed the amended trust:

I was the beneficiary of an irrevocable life insurance trust but after several months, signed an amended trust dissolving my status as beneficiary.

You gave up your rights.

 

[JudithE]

Okay. Do I have any legal recourse to reclaim my status as beneficiary?

 

[HappyWanderer]

From my understanding of what you wrote, no. But, you're getting to a very fact-sensitive area and it might be better to see an attorney. Even then, your damages probably won't be great enough to make it worth an attorney's worthwhile.

 

[JudithE]

Thank you for responding, I appreciate it!