Legal Question in Wills and Trusts in Virginia

No, Sir, the trustee whom you've designated in the trust to succeed you upon your demise should be able to handle it, but you may need to amend the beneficiary section of your life insurance policy to allow for the life insurance policy proceeds to be paid either to this successor trustee and/or to your trust and for the purpose stated in the trust.

If I read between the lines of your question correctly, I conclude you are not the person who created the trust nor the owner of the insurance policy, merely (!) the beneficiary. The policy benefficiary designation controls, so you receive the proceeds when the policy is paid. If the policy owner wanted the policy to be subject to the terms of the trust, the owner should have made the trust the beneficiary. In my view, you do not even have a conflict of interest that would preclude your continuing as trustee.