How to name beneficiaries and fund a trust at National Western Life

A living trust can be named when a formal executed trust agreement exists. State the name of the trust, for example "ABC Trust, under Trust Agreement dated January 2000."¹

Name the trust, not the trustee of the trust. Payment to and receipt by the trustees fully discharges the company to the extent of the payment.¹

A trust under the insured's will is named as "The Trust named in the last Will and Testament of the Insured."¹

Payment goes to the trustees named in the insured's will only if the company receives, within 90 days after the death, proof that the will was admitted to probate and names a trustee willing to accept payment. Otherwise it goes to the executors or administrators.¹

An estate is named by stating whose estate it is, for example "Estate of John Q. Public."¹

Unborn or unnamed children can be included: list all current children, then add "and any other" followed by a phrase such as "Children of the Insured."¹

Each beneficiary is named as primary, first contingent or second contingent with a percentage. Percentages must total 100% among primary beneficiaries and 100% among contingent beneficiaries.¹

The form has a per stirpes box to tick where it applies.¹

The owner and any joint owner sign. If a trust is the owner, an authorized trustee signs, and proof of authorization as trustee may be required.¹

If the spouse's status as beneficiary is changed in any way, the spouse must sign. An irrevocable beneficiary must also sign.¹

Available to download.¹

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Completed by the trustees. Available to download.²

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The change must be a written request to the company while the insured is living. It takes effect on the date of the request when recorded by the company at its office, subject to any payment made or action taken before recording.¹

The form revokes any prior beneficiary designation and method of settlement.¹

An optional common disaster clause sets a number of days, which should not exceed 60. During that period no payment is made to a beneficiary; if the last surviving beneficiary dies within it, payment is made in one sum to the owner or the owner's estate.¹

Do not name a trustee for a minor unless a formal trust exists.¹

Where a divorce is contemplated or pending, the owner may only initiate a change of beneficiary if he or she has full authority to do so.¹

A trust can be the owner or beneficiary of a life insurance contract; the Trust Information Form (DM-1094) covers the request.²

A trust can be the owner or beneficiary of an annuity contract; the Trust Information Form (DM-1094) covers the request.²

Completed by the trustees. Available to download.²

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For a trust as owner of the contract, Client Services provides the ownership-change paperwork. The DM-1094 applies to a request for a trust to be the owner.^{3, 2}

National Western "will continuously rely" on the DM-1094 and "may rely on information provided on this form and has no further obligation to investigate the terms of the Trust or the authority of the Trustee(s)."²

It is "the responsibility of the Trustee(s) to notify the Company immediately of any changes to the Trust and/or Beneficiaries designated in the Trust."²

The DM-1094 asks whether co-trustees may act independently or must act together, and whether the trustees hold power without limitation over insurance transactions.²