My fiancée has several debts that are being satisfied with her income tax refunds. However, certain debts have priority in being intercepted and we would like to have more control on which debts to satisfy. Her elderly dad has a life insurance policy naming her as beneficiary. We fear that when dad passes, the proceeds of this policy will also be intercepted. Can I be named the trustee for this policy with her being a beneficiary and thus allowing us to decide who gets paid and when? OR, should the policy be changed naming me the beneficiary?

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Originally Posted by Alan43

My fiancee has several debts that are being satisfied with her income tax refunds. However, certain debts have priority in being intercepted and we would like to have more control on which debts to satisfy. Her elderly dad has a life insurance policy naming her as beneficiary. We fear that when dad passes, the proceeds of this policy will also be intercepted. Can I be named the trustee for this policy with her being a beneficiary and thus allowing us to decide who gets paid and when? OR, should the policy be changed naming me the beneficiary?

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Proceeds from a life insurance policy pass to the beneficiary, in this case her arenot subject to being intercepted by anyone or any entity. The only exception (and it would take a tax attorney to answer this and his answer might not be exact) MIGHT be the IRS or a bankruptcy court. I am a licensed agent but not currently active in this particular area of insurance at present and my opinion is only from my experience, training and knowledge. I would have your father in laws agent check with his agent and his agent can seek the advise of the legal department of his insurance company.