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This is my thoughts on the irrevocable trust insurance nomination in the recently announced Nomination of Beneficiaries (NOB) framework. In the news is that the new regulation permits one to nominate his or her life insurance policies either as revocable or irrevocable nomination. Much resources have been put in place to provide greater clarity in law but I would say that the authorities were barking at the wrong tree? Why?
In the old system, nominating one’s spouse and/or child creates an irrevocable trust as spell out under the Section 73 Conveyancing and Law of Property Act. There was no provision to nominate parents and other people like siblings. So those who previously nominated parents and siblings are now holding on to life policies that are in the “libo.” On the 12th page of the Life Insurance Association (LIA)’s new booklet on “Your Guide to the Nomination of Insurance Nominees 2009”, it stated that those with such life policies are to seek “legal advice.” Well, when you need to talk to lawyers, it means you are holding on to trouble. Read more...[caption id="attachment_1562" align="alignright" width="150" caption="Photo by nasrulekram"][/caption]
This is my thoughts on the irrevocable trust insurance nomination in the recently announced Nomination of Beneficiaries (NOB) framework. In the news is that the new regulation permits one to nominate his or her life insurance policies either as revocable or irrevocable nomination. Much resources have been put in place to provide greater clarity in law but I would say that the authorities were barking at the wrong tree? Why?
In the old system, nominating one’s spouse and/or child creates an irrevocable trust as spell out under the Section 73 Conveyancing and Law of Property Act. There was no provision to nominate parents and other people like siblings. So those who previously nominated parents and siblings are now holding on to life policies that are in the “libo.” On the 12th page of the Life Insurance Association (LIA)’s new booklet on “Your Guide to the Nomination of Insurance Nominees 2009”, it stated that those with such life policies are to seek “legal advice.” Well, when you need to talk to lawyers, it means you are holding on to trouble. Read more...
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This is my thoughts on the irrevocable trust insurance nomination in the recently announced Nomination of Beneficiaries (NOB) framework. In the news is that the new regulation permits one to nominate his or her life insurance policies either as revocable or irrevocable nomination. Much resources have been put in place to provide greater clarity in law but I would say that the authorities were barking at the wrong tree? Why?
In the old system, nominating one’s spouse and/or child creates an irrevocable trust as spell out under the Section 73 Conveyancing and Law of Property Act. There was no provision to nominate parents and other people like siblings. So those who previously nominated parents and siblings are now holding on to life policies that are in the “libo.” On the 12th page of the Life Insurance Association (LIA)’s new booklet on “Your Guide to the Nomination of Insurance Nominees 2009”, it stated that those with such life policies are to seek “legal advice.” Well, when you need to talk to lawyers, it means you are holding on to trouble. Read more...
