How to name beneficiaries and fund a trust at Principal

Certain retirement plan beneficiary designations cannot be completed online and require a paper form.¹

A trust can be named beneficiary of an individual life policy (DD638) or of group life coverage (GP34795-14).^{2, 3}

A trust can be named beneficiary of an annuity on the Change of Beneficiary form (RF870).⁴

A trust can be named beneficiary of an employer retirement plan where the plan allows it (PG3745).⁵

The individual life form (DD638) has a testamentary trust option.²

The individual life form (DD638) asks for each beneficiary's share percentage.²

The retirement plan form (PG3745) asks for each beneficiary's share percentage.⁵

The form is signed and dated. An irrevocable beneficiary must also sign any change.^{2, 4, 5, 3}

On the individual life form (DD638), errors are corrected only by crossing out and initialing, with no white-out.²

Depending on the retirement plan, spousal consent may be needed to name someone other than a spouse. On PG3745 the consent must be witnessed by a plan representative or notary public.^{6, 5}

For life insurance policys. Available to download.²

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For annuitys. Available to download.⁴

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For employer retirement plans. Available to download.⁵

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For life insurance policys. Completed by the covered employee; the employer says where to submit it. Available to download.³

The individual life form (DD638) revokes all previous beneficiary forms for the policies listed on it.²

Life insurance policies issued in Massachusetts require a witness signature on the Beneficiary Change form (DD638).²

An individual life policy (term, GI Term II, UL, IUL, VUL or survivorship UL) moves to a trust on the Ownership Change Form (DD425).⁷

A deferred annuity moves to a trust on the Annuity Change of Ownership or Annuitant form (DD9034) with the Trustee Certification and Indemnification form (DD9093).^{8, 9}

For life insurance policys. Available to download.⁷

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For life insurance policys. Available to download.¹⁰

For annuitys. Available to download.⁸

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For annuitys. Available to download.⁹

An individual life policy can move to an irrevocable life insurance trust on the Ownership Change Form (DD425).⁷

On the Ownership Change Form (DD425) both the current and the new owner sign, and a trust signs by its trustees, with title. Any assignee and any irrevocable beneficiary must also sign.⁷

On the Ownership Change Form (DD425), the change is effective on the date the current owner signs, once the form is accepted.⁷

Principal's Ownership Change Form (DD425) says that, unless another type is indicated, a transfer between individuals or from an individual to a trust is treated as a gift, and cost basis carries over to the new owner.⁷

Principal's annuity ownership form (DD9034) says a transfer by the current owner to their grantor trust will not be treated as taxable to the current owner for tax reporting purposes.⁸

Administration of irrevocable life insurance trusts funded with Principal life insurance¹¹