§ 13-3.3 Designation of trustee to receive proceeds of thrift, savings,\n pension, retirement, death benefit, stock bonus and\n profit-sharing plans, systems or trusts, of life, group life,\n industrial life or accident and health insurance policies and\n of annuity, endowment and supplemental insurance contracts,\n and taxation thereof\n (a) The proceeds of thrift, savings, pension, retirement, death\nbenefit, stock bonus and profit-sharing plans, systems or trusts, of\nlife, group life, industrial life or accident and health insurance\npolicies and of annuity, endowment and supplemental insurance contracts\n(hereinafter referred to as "proceeds") may be made payable to a trustee\ndesignated as beneficiary in the manner prescribed by this section and\nnamed as:\n (1) Trustee under a trust agreement or declaration of trust in\nexistence at the date of such designation, and identified in such\ndesignation, and such proceeds shall be paid to such trustee and be held\nand disposed of in accordance with the terms of such trust agreement or\ndeclaration of trust, including any amendments thereto, as they appear\nin writing on the date of the death of the insured, employee or\nparticipant. It shall not be necessary to the validity of any such trust\nagreement or declaration of trust that it have a trust corpus other than\nthe right of the trustee as beneficiary to receive such proceeds.\n (2) Trustee of a trust to be established by will, and upon\nqualification and issuance of letters of trusteeship such proceeds shall\nbe payable to the trustee to be held and disposed of in accordance with\nthe terms of such will as a testamentary trust. A designation which in\nsubstance names as such beneficiary the trustee under the will of the\ninsured, employee or participant, shall be taken to refer to the will of\nsuch person actually admitted to probate, whether executed before or\nafter the making of such designation.\n (b) If no qualified trustee claims such proceeds from the insurer or\nother payor within eighteen months after the death of the insured,\nemployee or participant, or if satisfactory evidence is furnished to the\ninsurer or other payor within such period showing that there is or will\nbe no trustee to receive such proceeds, such proceeds shall be paid by\nthe insurer or other payor to the personal representative or assigns of\nthe insured, employee or participant, unless otherwise provided by\nagreement with the insurer or other payor during the lifetime of the\ninsured, employee or participant.\n (c) Except to the extent otherwise provided by the trust agreement,\ndeclaration of trust or will, proceeds received by the trustee shall not\nbe subject to the debts of the insured, employee or participant, to any\ngreater extent than if such proceeds were payable to the beneficiaries\nnamed in the trust, and for all purposes including transfer or estate\ntax purposes they shall not be deemed payable to or for the benefit of\nthe estate of the insured, employee or participant.\n (d) Proceeds so held in trust may be commingled with any other assets\nwhich may properly become part of such trust.\n (e) Nothing in this section shall effect the validity of any\ndesignation heretofore made of the trustee of any trust established\nunder a trust agreement or declaration of trust or by will.\n (f) This section shall be construed as declaring the law as it existed\nprior to its enactment and not as modifying it.\n
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