INSURABLE INTEREST AMENDMENTS
TO UNIFORM TRUST CODE*
NATIONAL CONFERENCE OF COMMISSIONERS
ON UNIFORM STATE LAWS
and by it
APPROVED AND RECOMMENDED FOR ENACTMENT
IN ALL THE STATES
at its
ANNUAL CONFERENCE
MEETING IN ITS ONE-HUNDRED-AND-NINETEENTH YEAR
CHICAGO, ILLINOIS
JULY 9 - JULY 16, 2010
WITHOUT PREFATORY NOTE OR COMMENTS
COPYRIGHT © 2010
By
NATIONAL CONFERENCE OF COMMISSIONERS
ON UNIFORM STATE LAWS
July 21, 2010
*The following text is subject to revision by the Committee on Style of the National Conference of Commissioners on Uniform State Laws.
INSURABLE INTEREST AMENDMENTS TO THE UNIFORM TRUST CODE
[SECTION 113. INSURABLE INTEREST OF TRUSTEE.
(a) In this section, “settlor” means a person, including a person for which a fiduciary or agent is acting, that executes the trust instrument.
(b) A trustee of a trust has an insurable interest in the life of an individual insured under a life insurance policy that is owned by the trustee of the trust acting in a fiduciary capacity or that designates the trust itself as owner if, on the date the policy is issued:
(1) the insured is:
(A) a settlor of the trust; or
(B) an individual in whom a settlor of the trust has, or would have had if living at the time the policy was issued, an insurable interest; and
(2) the life insurance proceeds are primarily for the benefit of trust beneficiaries that have[:
(A)] an insurable interest in the life of the insured [; or
(B) a substantial interest engendered by love and affection in the continuation of the life of the insured and, if not already included under subparagraph (A), who are:
(i) related within the third degree or closer, as measured by the civil law system of determining degrees of relation, either by blood or law, to the insured; or
(ii) stepchildren of the insured].]