Taxing Matters
Overtaxed Member
If the trust either owned the policy or was a beneficiary of the policy then there are potential tax traps the trustee and beneficiary need to be aware to avoid the federal and state governments from taking a bigger bite in tax from the estate than is necessary. I'd expect that in most cases the policy would just be owned by the decedent and directly payable to the named beneficiaries. It's easier, less expensive, and avoids potential tax traps.