A trustee may retain any life insurance policy contributed to a trust by a settlor, or purchased by the trustee upon the request of the settlor, as an asset of the trust without regard to any lack of diversification caused thereby and without regard to the terms and conditions of the life insurance policy. The trustee shall not be liable for lack of diversification to any beneficiary of a trust for the trustee’s retention of the life insurance policy.
Ala. Code § 19-3B-818
Life Insurance Policies Held by Trustee.
Known as the Alabama Uniform Trust Code
The act spans §§ 19-3B-1001 to 19-3B-906 (108 sections).
(Act 2006-216, p. 314, §1.)
Official source: Alabama Legislature (ALISON). Reproduced from public-domain Alabama statutes; confirm against the official source for the current text. Not legal advice.