Legal Question in Wills and Trusts in Arizona

Re: irrevocable trusts

Insurance premiums may be paid from any source. It is not illegal to make premium payments by credit card, debit card, check or cash. The monthly payments must be made to keep the coverage in force, but the ownership of the policy is not relevant to the manner in which premiums are paid.

Re: irrevocable trusts

The premium payments can be made from any source as that payment has nothing to do with the ownership of the policy or the terms of the trust. Such payments would be a gift to the trust and the beneficiaries thereof. Usually the trust agreement will provide that additional assets may be transferred to the trustee to use to pay the insurance premiums. And, this is a common practice.