Can A Policy (Life, Health, Auto, Home, Etc.) Be Transferred Into The Trust's Name
Typically yes; however, it is not proper for every type of insurance. It is often seen as beneficial for only vehicles and homes to have the insurance policy in the trust's name (especially if a mortgage/loan is still being paid off for these assets). Life, health and many other types of insurances typically cannot be transferred into the trust's name and delivers no real benefit. If one wishes to still transfer such policies into the trust, simply call the insurance provider and ask if the policy is able to be transferred to a corporation or LLC - if yes, the policy can also be transferred to a trust.
NOTE: Social Security checks should still be redeemed by the Social Security account holder and not within the trust's name. With the exception of certain federal agencies, creditors cannot garnish or seize Social Security benefits, whether it is retirement, disability, survivor’s benefits, or SSI. These protections apply, even if the creditor has a court judgment. The court may not order one to pay the judgment out of Social Security money. Therefore, if one is sued on a debt, it is very important that one not enter into agreed orders or agreed judgments where it is agreed to use the Social Security to pay a debt. SSI (Supplemental Security Income) cannot be taken at all, unless the Social Security Administration is trying to correct incorrect past payments. Only federal agencies may try to take Social Security benefits. Examples of some things the federal agencies can try to take one's Social Security benefits for are: 1) Federally subsidized student loans. 2) Other loans owed to, or subsidized by the government, or 3) food stamp overpayments. If one's benefits are more than $750 per month, the government agency can take the lesser of the following: 1) The amount of the debt, 2) 15% of one's monthly payment, or 3) the amount by which the monthly payment is more than $750.
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