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If bank account for life insurance trust bank account is closed does new one have to be opened?

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I have a bank account where  I am trustee with my sister for a irrevocable life insurance trust, We write a check and both sign it to  to pay  for life insurance. The life insurance was created by my parents and the children being the benificiaries, which is us. There were about 10  checks written out  by a third party for  about $1500.  there was  about $6000 in the account. My sister said the checks were stolen.  Now  my sister will not open a new trust  bank account. My sister  just sends "cashier checks" which does not require our signitures to pay for life insurance. If you do not open bank account for irrevocable  life insurance trust does that mean  you must pay taxes on the life insurance proceeds.  One weird thing about the life insurance the benificiaries who receives the funds can be changed  in the life insurance  by a signature of both trustees.  My sister has been trying to  get me to sign papers with only my signiture on it. What is my sister trying to do here? What can I do about it as trustee? What can bank do? 

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Not sure about the legal requirements of that kind of insurance but I would say I think you know what your sister is trying to do.

I would go to the bank and ask for records of all the transactions that occurred in the account and ask specifically to see the canceled checks for that $1500. I would also contact or go into an office of the insurance company and ask to see the policy and let the insurer know that your sister is trying to get to you to sign documents for it and that she may be attempting to change the beneficiaries or other terms without your knowledge. Talk to them about making the policy only changeable in person with both trustees present or see what other safety mechanisms are possible. BTW it is not a weird aspect that the beneficiaries can be changed since this is nearly true of all insurance policies that have customer determinable beneficiaries.

You will have to take a major part in knowing all about what is going on in this situation or it sounds very likely your sister will swindle you. Pretty much no one will ask you to sign two signature documents, when they haven't, without devious intent. Also what kind of documents were they, what did they say? Did you read them?  I'm not sure if you are leaving out many details or if you are really being this non-proactive about the situation. Talk to the bank and the insurer and they will be able to explain any legal requirements and steps you can take to protect yourself. This isn't a bad movie plot where they try to help your sister steal your life insurance, they have no reason to not tell you the basic truth of the situation and to give you advice on how to proceed.

The people here in the finance forum are awesome and may have some great advice for you, but you need to take the two most important first steps yourself then come back with questions about specific things you now know at least the basics of.


  1. What happened to that money in the bank account? I'm guessing she took it out and now keeps it to pay for the cashier's checks.
  2. Do you know for sure that the insurance policy is still being paid? Do you have the receipts? It does not take long for a policy to lapse and not long after that the policy cannot be reinstated and the benefits and money paid in are lost irrevocably.  I know I did life insurance sales for a bit and heard too many horror stories.

She told me she wanted me to go to bank and get what is left out of the account, which was over several thousand dollars.

FYI, the OP later posted a different thread with additional information about the situation: https://www.fatwallet.com/forums/finance/1578578

sawol said:   
 My sister has been trying to  get me to sign papers with only my signiture on it. 


What?    She's handing you blank pieces of paper and asking you to put your signature on them?

I hope there is more to it than that.


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