Trust
A legal arrangement where a trustee holds and manages assets (like a life insurance policy) for the benefit of designated beneficiaries.
Detailed Explanation
Using a trust as the beneficiary of a life insurance policy can help with estate planning, providing more control over how and when the death benefit is distributed.
Practical Example
Emily established a trust and named it as the beneficiary of her life insurance policy. This allows the trustee to manage the funds for her children according to the terms of the trust.
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