12 190 Insurance Trusts
Wills, Trusts and Estates by James L. MAdden, © 1927
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INSURANCE TRUSTS 181
ingly increases. So that the intent of the policyholder
may be properly carried out, it is well in these cases
to put the whole insurance estate in the hands of some
one trust company. This company, understanding the
conditions as well as the peculiarities and possible
trouble which may arise from the complex contingen-
cies, will be more able to see that the policyholder’s
wishes are fulfilled. In the event conditions arise
which differ from those which existed at the time of
the policyholder’s life, the trust company can make
adjustment in the interest of the beneficiary, provid-
ing sufficient discretionary powers are given it. Such
adjustment should make for facility of administration
and economical operation as well as for a minimum
of legal expense and court fees.
Revocable and Irrevocable Trusts
Trusts may be revocable or irrevocable. The policy-
holder must elect one of these forms. In the event
he selects a revocable trust he will have complete con-
trol over the policy in so far as he can change or
cancel the trust agreement at any time. Furthermore,
he can borrow upon the policy. Under the terms of
irrevocable trusts the policyholder cannot cancel or
change the terms set forth therein. He surrenders his
right to borrow on the policy.
Just as the experience of life insurance has proved
the desirability of reserving the right to change the
beneficiary, so it would seem that policyholders cre-
ating insurance trusts would lean toward the revocable
form. Many of the same reasons in favor of reserving
the right to change the beneficiary apply with equal
