How to name beneficiaries and fund a trust at Lincoln Financial

A life insurance or MoneyGuard policy takes primary and contingent beneficiaries, managed online under "Beneficiary Information" then "Manage Beneficiaries," or on the Beneficiary Change for Life Policy form (CS06893).^{1, 2}

Employer-sponsored group life beneficiaries are administered through the employer plan, not through Lincoln's individual channels.³

An annuity contract takes a beneficiary designation online under "My Information/Beneficiaries" or on the Change of Beneficiary - Annuities form (28493). An online update appears in the account the next business day.^{1, 4}

Form 28493 states that the contract language decides whether the death benefit is paid on the death of the owner or the death of the annuitant, and that the form cannot be used with employer-sponsored plans.⁴

Employer retirement plan beneficiaries are administered through the employer plan, using the employer's benefit portal or Lincoln's employee benefits login, not through Lincoln's individual life or annuity channels.³

A revocable or irrevocable trust can be named as beneficiary on life insurance and annuity products. The trust's tax ID number is required in the CS06893 trust section.^{2, 4}

No trust document is filed with Lincoln when a trust is named as beneficiary; the trustee produces proof of the trust at claim time.^{2, 4}

Primary and contingent beneficiaries are entered with percentage allocations totaling 100% for the primary tier and, separately, 100% for the contingent tier.^{1, 2, 4}

Percentages are entered as numbers: form CS06893 states "Lincoln will not accept dollar amounts or fractions."²

A jointly owned annuity contract cannot be changed online. Lincoln requires the paper Change of Beneficiary form (28493) signed by both owners.⁴

A beneficiary change on a trust-owned policy is signed by all trustees, each showing their title, with a Certification of Trustee Powers attached.²

For life insurance policys. Available to download.²

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For life insurance policys. Available to download.⁵

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For annuitys. Available to download.⁴

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Beneficiary designations override the instructions in a will.^{2, 4}

Form 28493 offers a per stirpes election: if a beneficiary dies before the owner (or annuitant), that beneficiary's share goes to their living children in equal shares.⁴

Naming an irrevocable beneficiary on a life policy requires the Irrevocable Beneficiary Amendment to Policy (CS11722) filed with the CS06893; Lincoln states both forms must be submitted together.⁵

Once named, the irrevocable beneficiary must co-sign any change of ownership, assignment, beneficiary change, loan, surrender, withdrawal of dividend value, rider change, death benefit option change or specified amount change.⁵

Lincoln retained Liberty Mutual's group benefits business in 2018 and holds those group life certificates issued through an employer. Start with the employer's benefits administrator and the certificate.⁶

A life policy can be transferred to an irrevocable life insurance trust with the Ownership Change for Life Policy form (CS06891), filed with a CS06893 and a CS11769 certifying the trustees and their authority.^{7, 8}

Employer group life certificates cannot be retitled to a trust. A trust can only be named as beneficiary.³

Lincoln accepts a trust as the owner of an annuity contract with the Certification of Trustee Powers - Annuities (AN07086), a separate form from the life forms, signed by all trustees.⁹

Employer retirement plan accounts cannot be retitled to a trust. A trust can only be named as beneficiary.³

For life insurance policys. Available to download.⁷

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For life insurance policys. Completed by all currently acting trustees. Available to download.⁸

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For annuitys. Completed by all trustees. Available to download.⁹

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The CS06891 changes the owner only and does not change the beneficiary designation. A Beneficiary Change form (CS06893) is filed with it, or the proceeds are still paid to whoever is currently named.⁷

If an assignee or irrevocable beneficiary already exists on the policy, that party also signs the CS06891. The form names who should receive future premium notices; otherwise Lincoln sends them to the new owner, the trustee.⁷

On the CS11769 the trustees elect who can authorize transactions on the trust-owned policy: all trustees, a majority of trustees, any one trustee, or only specified named trustees. That election governs every later loan, surrender, rider change and beneficiary change.⁸

Lincoln does not accept a power of attorney acting on behalf of a trustee; only trustees and successor trustees may sign for the trust.⁹

A new Certification of Trustee Powers is submitted whenever the trustees, grantor information or trust TIN change. On the CS11769 the trustees commit to tell Lincoln in writing of any trustee change, with a death certificate or resignation plus an Appointment of Successor Trustee.⁸

Lincoln reserves the right to require the full trust document and every subsequent amendment and restatement.⁹

The CS11769 states that Lincoln is not obligated to read the trust instrument or to verify that the trustee is acting within its authority.⁸

The CS11769 asks whether the trust is a grantor trust. If the trust has a TIN, Lincoln reports taxable distributions to the trust under that TIN; if it has no TIN and is a grantor trust, Lincoln reports them to the grantor, and the grantor or trustee completes IRS Form W-9 or W-8BEN.⁸

If the trust later stops being a grantor trust, the trustee or grantor must notify Lincoln in writing immediately and supply a TIN on a Form W-9.⁸

The AN07086 asks for the trust type (irrevocable, revocable, testamentary, nominee or charitable remainder trust) and whether it is a grantor trust.⁹