Video Summary
How are items in a trust insured? We need to look at the basics as far as what we talk about as far as a trust is concerned. A trust is simply a legal document. It’s a road map. It says what the trustee is supposed to do, so items are titled in the name of the trustee of a trust, and the trust documents tells the trustee what they’re supposed to do with the documents.
So usually, we treat that … It’s usually an estate planning trust is called a revocable trust, and you name yourself to be the trustee and direct that all the property be distributed to you whenever you ask for it, and you have complete discretion. You don’t even have to change the federal ID number as far as that’s concerned.
So you as the beneficial owner of it, you just insure the property in your individual name during your lifetime. Then upon your death, and if you say that you left property, real estate, and it went to a child or someone for their benefit and to be held during their lifetime, well, then you need to talk to the insurance agent and probably have the lawyer assist you. And the insurance agent, once they understand how the trust works and who the beneficiary is, they would insure the beneficial owner, who is the beneficiary of the trust. They may also name the trustee as a beneficiary for the … maybe the trustee FBO, which stands “for the benefit of” and name the beneficiary as far as insuring the property.
Hopefully, that gives you a little bit of overview of how a trust works and as far as getting insurance. But it’s basically the insurance company will insure the beneficial owner of the property, and you just need to work with the agent to let them know how that works. If you have any questions about trusts, give me a call at 727-847-2288.