7.4 Trust of Life Policies

The trust's device: the policy's settlement — the trustee's holding for the beneficiaries: the married-women's-property-type protection (the policy's trust for the wife-and-children — the creditors' insolvency-protection's classic: the policy's exclusion from the bankrupt's estate); the trust's benefits (the estate-planning; the minors' protection — the children's payment's trustee- management; the creditor's shield). The trust's mechanics: the declaration (the policy's trust- declaration — the trustee-and-beneficiaries' specification); the trustee's powers (the premium's payment, the loan's-and-surrender's management, the claim's receipt); the beneficiary's rights (the equitable interest's vesting — the trust's enforcement). The Nepali faces: the trust's rare practice (the common-law device's limited local use — the nomination's functional alternative); the nomination's craft (the policyholder's designation — the nominee's payment; the nominee-vs-heir question: the nomination's collection-right vs the succession's ultimate-devolution — the succession-law's interface); the minor's-payment protections (the guardian's receipt's discipline). Exam Focus Long questions: (i) The life types' catalogue (the whole-life-endowment-term trio's full craft); (ii) The disclosure's life-face (the material facts + the contestability); (iii) The assignment's anatomy (the absolute-conditional distinction + the procedure). Short questions: the term assurance; the incontestability; the conditional assignment; the nomination-vs-assignment. Trick areas: (i) The LIFE insurance is the BENEFIT contract (the sum assured — the life's indemnity's impossibility) — the principle's restatement; (ii) The term assurance pays ONLY the period's death — the survival's no-return (the cheapest-but-purest face);…