That would make sense for a house. This situation is strictly limited to the trust ONLY distributing life insurance proceeds to the beneficiaries. Nothing else exists in the trust any more (it was last amended in 2003). When it was last amended our parents did have their house, cars, bank accounts, IRAs and even a time share (ouch!) but all of those items are long gone. The last one was closed, sold or liquidated over 12 years ago. Unless you have very young children or have very specific ways you want to have your life insurance disbursed to the beneficiaries, there seems to be no real benefit to putting your life insurance in your living trust then putting the beneficiaries in the trust with disbursement percentages. I guess the only other reason to do this is if the Grantee had a HUGE estate where they wanted to keep the life insurance benefit out of their estate valuation. As our mom passed at almost 91 with really no actual estate due to 3 years of going broke living in assisted living then in 2020 I built a full handicap addition for her to move in so she could live her last four years with family and pets for basically nothing other than the cost of her in home help 4 hours a day. Her estate consisted of her checking / saving, and IRA with direct beneficiaries listed specifically and her life insurance pointing to the trust.
