University of Minnesota Law School Scholarship Repository Minnesota Law Review 1967 The esT tamentary Life Insurance Trust Minn. L. Rev. Editorial Board Follow this and additional works at: https://scholarship.law.umn.edu/mlr Part of the Law Commons Recommended Citation Editorial Board, Minn. L. Rev., "The eT stamentary Life Insurance Trust" (1967). Minnesota Law Review. 2879. https://scholarship.law.umn.edu/mlr/2879 This Article is brought to you for free and open access by the University of Minnesota Law School. It has been accepted for inclusion in Minnesota Law Review collection by an authorized administrator of the Scholarship Repository. For more information, please contact
[email protected]. 1118 The Testamentary Life Insurance Trust I. INTRODUCTION In a testamentary life insurance trust proceeds of a life in- surance contract are paid to trustees named in the will of the insured. The trustees hold or dispose of the proceeds as the terms of the will dictate. The distinctive characteristic of the trust is its dependence upon the vll of the insured for com- pletion; in contrast, the inter vivos life insurance trust is cre- ated before the insured's death. The dependence of the testa- mentary trust upon the will raises the problem of whether the disposition violates the Statute of Wills since the statutory for- malities are not followed. Further, when the policies are assigned to trustees to be named in the last will, no trustees exist until the insured's last will is legally established raising the question whether a valid trust has been created. Consequently, validity of such a trust is uncertain.1 The testamentary life insurance trust combines the in- dividual advantages of the life insurance contract, the inter vivos trust, and the inter vivos trust with a pour-over from the will of the settlor.2 One of the chief advantages of life in- surance is to provide the estate with necessary liquidity.