How to name beneficiaries and fund a trust at New York Life

On a deferred annuity, the surviving spouse must be the sole primary beneficiary for a surviving owner and spouse to continue the policy at the death of either owner. If someone else is named, spousal continuance is not available and the funds go to the listed beneficiary.¹

A fixed annuity application with no beneficiary named is issued with a default: the owner's estate for an individual owner, the surviving spouse for joint spouses, the surviving owner for joint non-spouses, and the corporation or trust itself for entity owners.¹

A trust can be named as beneficiary or owner, on Form 21131 or with the Statement of Trust (Form 20885).^{2, 3}

On an annuity serviced by New York Life Annuities, NYLIAC will remit payment only to the trust as beneficiary, not to beneficiaries identified in the trust document.⁴

Form 21131 states that policy proceeds payable to a testamentary trust cannot be paid to the trust until the estate is probated, or a small estate affidavit is filed where the state allows one.³

The Statement of Trust (Form 20885) may not be used for a testamentary trust, a trust created within a will.²

Primary, secondary and tertiary beneficiaries can be named. Shares in each class must total 100%; percentages or fractions are accepted and specific dollar amounts are not.³

Per capita applies by default unless per stirpes is indicated.³

Each owner's signature is required on a contract with multiple owners. A corporation or trust owner signs through two corporate officers or the required trustees, with titles.³

A power of attorney signing the form must be current, and in certain states the right to update a beneficiary must be specifically granted in the power of attorney.³

Completed by each owner. Available to download.³

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Available to download.^{5, 6}

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Available to download.²

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For annuitys. Sent by the institution on request.¹

An irrevocable beneficiary on a life contract must authorize changes in writing.³

Form 20885 states that the owner keeps the right to change the beneficiary designation at any time, even if the trust agreement says otherwise, for revocable and irrevocable trusts.²

For a life policy with a trust as beneficiary, New York Life may ask for proof that the trust is in effect before proceeds are paid.²

If the trust is not in effect at the insured's death, the proceeds go to the contingent beneficiary, if any, otherwise in a single sum to the owner if living, or to the owner's estate.²

Massachusetts residents need a witness on life insurance beneficiary changes: someone over age 18 who is not the insured, the policy owner or a designated beneficiary.³

For an annuity serviced by New York Life Annuities, the NYLIAC Statement of Trust (Form 19072) is completed "for Trust-owned Annuity policies."⁴

Available to download.^{2, 7, 6}

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Available to download.⁸

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Available to download.⁹

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For annuitys. Completed by all trustees. Available to download.⁴

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If no box is checked in Step 1B of the Statement of Trust (Form 20885), all trustee signatures are required to exercise any rights.²

On the NYLIAC Statement of Trust (Form 19072), authority of trustees defaults to "May not act independently" if left unanswered, meaning all trustees sign all documents.⁴

Before a successor trustee can act, documentation must confirm that the current trustee has resigned, is incapacitated or deceased, or is otherwise incapable of serving.²

New York Life reserves the right to request the entire trust document.²

NYLIAC reserves the right to require a copy of the complete trust document.⁴

Beneficiary changes and trust ownership for annuities serviced by New York Life Annuities¹⁰