The New York 20885 form is a document used for trusts that are not testamentary in nature, specifically for life insurance and annuity policies. It allows individuals to designate a trust as the beneficiary of these policies, ensuring that benefits are managed according to the trust's terms. Proper completion of this form is essential for maintaining compliance with insurance regulations and ensuring that the intended beneficiaries receive their benefits.
The New York 20885 form serves as a critical document for individuals and entities looking to establish or modify life insurance and annuity policies under a trust arrangement. This form is specifically designed for trusts that are not testamentary in nature, meaning they are created independently of a will. Key aspects of the form include the requirement to provide comprehensive details about the proposed insured, policy numbers, and trust information. Sections one through ten must be meticulously completed, ensuring that the trust agreement is in effect and includes necessary information such as the trust name, date of establishment, and the relationship of beneficiaries and trustees to the insured. Additionally, the form outlines the need for signatures from all trustees unless a provision within the trust allows for independent action. It is important to note that if the trust is the beneficiary of the policy, the insurance company retains the right to verify the trust’s validity before disbursing any proceeds. Furthermore, the form includes sections for taxpayer identification and backup withholding certifications, underscoring the importance of compliance with IRS regulations. By following the outlined instructions, individuals can navigate the complexities of trust-related insurance matters effectively.
This form is specifically designed for trusts other than testamentary trusts. A testamentary trust is created within a will and requires a different approach. Using the 20885 form for a testamentary trust could lead to complications or delays in processing.
In fact, items 1-10 on the first page must be completed in full. Omitting any of this information can result in the form being rejected or delayed. It's crucial to provide accurate and complete details to ensure a smooth process.
If the owner is a trust and you are completing the form without an agent, a copy of the trust agreement is required. This helps verify the trust's validity and ensures compliance with New York Life's policies.
While it is true that you can complete the form independently, if you have an agent assisting you, their certification is required. This section confirms that the agent has reviewed the trust documents and can help prevent any misunderstandings.
New York Life reserves the right to request a copy of the trust if deemed necessary. This is a standard procedure to ensure that all information provided is accurate and that the trust is indeed in effect at the time of the insured's death.
When filling out the New York 20885 form, here are nine important do's and don'ts:
NEW YORK LIFE INSURANCE COMPANY
NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A Delaware Corporation)
NYLIFE INSURANCE COMPANY OF ARIZONA (Not licensed in every state)
STATEMENT OF TRUST - (For Trusts other than Testamentary Trusts)
Instructions:
•Use this form for Life and Annuity policies (new business and inforce changes).
•Do not use this form for a Testamentary Trust (a trust created within a will).
•Items 1-10 on page one must be completed in full.
•Complete page three and secure required signatures.
•For inforce policies, the Change of Beneficiary form (21131) and Transfer of Ownership form for life policies (21132) can be found in the Transfer of Ownership Life Kit (form 22600). The Transfer of Ownership form for annuity policies can be found in the Transfer of Ownership Annuity Kit (form 22599).
•Agent Certification section on page three must be completed and signed by agent - if your agent is assisting you with this change. If completing this form without an agent and the owner is a trust, please provide a copy of the trust agreement.
•In all instances New York Life reserves the right to request a copy of the trust if we deem it necessary.
Complete items 1-10 before proceeding
1.PROPOSED INSURED(s)/INSURED(s)/ANNUITANT(s)
2.POLICY NUMBER(s)
3. I/We affirm that the Trust Agreement created by
as Grantor/
SettLOr/Trustor is in effect and contains the following information:
4.Trust Name:
5.Trust Date:
6.State where Trust Established
7.Beneficiary(ies) of Trust:
8.Relationship of Trust Beneficiary(ies) to Proposed Insured(s)/Insured(s)/Annuitant(s):
9. Name(s) of Trustee(s):
Note: If more than one Trustee, we require all Trustees to sign applicable forms, unless we receive a copy of the Trust stating that the Trustees can act independently.
10.Relationship of Trustee(s) to
Proposed Insured(s)/Insured(s)/Annuitant(s):
RETURN FORM TO:
For Variable Life and Variable Annuity policies:
New York Life, Variable Products Service Center
Madison Square Station, PO Box 922, New York, NY 10159
For all other policies:
If You Live In: AL, CT, DC, DE, FL, GA, IL, IN, KY, MA, ME, MD, MI, MS, NC, NH, NJ, NY, OH, PA, RI, SC, TN, VA, VT, WI, or WV, return this form to:
New York Life, Cleveland Service Center
PO Box 6916, Cleveland, OH 44101
If You Live In: AK, AR, AZ, CA, CO, HI, IA, ID, KS, LA, MN, MO, MT, NE, ND, NM, NV, OK, OR, SD, TX, UT, WA, or WY, return this form to:
New York Life, Dallas Service Center
PO Box 130539, Dallas, TX 75313-0539
Other: (i.e. foreign address, etc) return form to either location above.
20885 (1/10) Page 1 of 3
Please read this page and secure required signatures on page three.
STATEMENT REGARDING TRUST AS POLICY BENEFICIARY
I/We affirm that the beneficiary designation for each policy listed agrees with a Trust Agreement created by the Grantor and dated as shown on page one.
For Life Insurance Policies:
If, before the proceeds are paid, the Insurer(s) receives proof that the Trust as policy beneficiary is not in effect at the Insured’s death, the proceeds shall be paid to the contingent beneficiary(ies), if any. Otherwise, the proceeds shall be paid in a single sum to the Owner, if the Owner is living at that time. If the Owner is not living at that time, the single sum shall be paid to the Owner’s Estate.
For Annuity Contracts:
Please see your Agent/Registered Representative for payment methods available upon death of the Owner/Annuitant.
For Life Insurance Policies and Annuity Contracts:
Before the Insurer(s) pays the proceeds at death, it may ask for proof that the Trust is in effect;
The Owner possesses all rights of ownership of each policy including the right to change the beneficiary designation at any time even if there is a contrary provision in the Trust Agreement. This applies to revocable and irrevocable trusts; The Insurer(s) will not have any liability after it pays the proceeds of each policy, as set forth in this Statement;
The Interest of the Trust(s) in each of these policies shall be subject to any assignment of that policy made before or after this Statement.
STATEMENT REGARDING TRUST AS OWNER
I/We affirm that the Trust Agreement created by the Grantor as shown on page one (and the trust date as shown on page one) agrees with the following:
1.The Trustee(s) have full authority to pay premiums.
2.The Trust Agreement contains no limitations on the ownership rights of the Trust(s) as owner(s) of the insurance/annuity policies.
20885 (1/10) Page 2 of 3
IMPORTANT: The Internal Revenue Service (IRS) requires that the named Owner complete the following:
(The IRS does not require your consent to any provision of this document other than the certifications required to avoid backup withholding).
Taxpayer Identification Number and Backup Withholding Certifications
Policyowner’s Taxpayer Identification Number is
Under penalties of perjury, I certify that the number shown above is my correct Taxpayer Identification Number. I further certify that I am a U.S. person (including a U.S. resident alien).
I also certify that (please check only one box):
I have been notified by the IRS that I am subject to backup withholding.
I am not subject to backup withholding because (a) I have not been notified that I am subject to backup withholding as a result of failure to report all interest or dividends, or (b) the IRS has notified me that I am no longer subject to backup withholding.
/
X
Date
Grantor(s) signature
Grantor(s) signature, if required
Trustee(s) signature
Trustee(s) signature, if required
Proposed Insured(s)/Insured(s)/Annuitant(s) signature
Additional Signature, if required
Applicant(s)/Owner(s) signature, if other than above
\
If the indicated policy is corporate-owned, provide signatures and titles of two corporate officers below.
Print Name & Title of OfficerPrint Name & Title of Officer
Officer’s Signature
AGENT CERTIFICATION
(if Agent assists with completion of form)
By signing below I attest that I have reviewed the identifying trust document(s) described on page one and that the document(s) appeared to be genuine and original.
Print Name of Agent/Registered Representative
Agent/Registered Representative’s Signature
20885 (1/10) Page 3 of 3
The New York 20885 form is used to designate a trust as the beneficiary or owner of life insurance and annuity policies. This form is specifically for trusts that are not testamentary, meaning they are not created within a will. It ensures that the trust's information is accurately reflected in the insurance policy records.
This form should be completed by the grantor or trustee of the trust. If you are making changes to an existing policy or establishing a new one, you will need to fill out this form. If an agent is assisting you, they must also sign the form in the designated section.
Items 1-10 on the first page must be completed in full. This includes details about the proposed insured, policy numbers, trust name, trust date, state of establishment, beneficiaries, and trustees. If there are multiple trustees, all must sign unless the trust document states otherwise.
If you are completing the form without an agent and the owner is a trust, you must provide a copy of the trust agreement. This document may be requested by New York Life to verify the trust's details and authority.
The return address depends on the type of policy and your state of residence:
If New York Life receives proof that the trust is not in effect when the insured passes away, the proceeds will be paid to the contingent beneficiaries listed, if any. If there are no contingent beneficiaries, the proceeds will go to the owner's estate.
The IRS requires the named owner to complete taxpayer identification and backup withholding certifications. This ensures that the correct taxpayer identification number is on file and that the owner is aware of their backup withholding status. This information is crucial for tax reporting purposes.
Filling out the New York 20885 form requires careful attention to detail. It is essential to complete all necessary sections accurately to ensure that the trust is properly recognized as a beneficiary or owner of the policy. After completing the form, it must be returned to the appropriate service center based on your state of residence.
Filling out the New York 20885 form can be straightforward, but many make critical mistakes that can lead to delays or complications. One common error is failing to complete all required fields on page one. Items 1-10 must be filled out entirely. Leaving any of these items blank can result in the form being returned or rejected, which prolongs the process.
Another frequent mistake is not providing accurate information about the trust. The trust name, date, and state of establishment must be correct. If there are discrepancies, it could raise questions about the validity of the trust. This can complicate the beneficiary designation and potentially delay any claims made against the policy.
Many people overlook the need for signatures. If the owner of the trust is a trustee, all trustees must sign the applicable forms unless the trust document states otherwise. Missing signatures can lead to the form being deemed incomplete. Ensure that all required parties sign where indicated to avoid this issue.
Individuals often neglect to include a copy of the trust agreement when filling out the form without an agent. If you are completing the form independently and the owner is a trust, this document is necessary. Not providing it can lead to delays as New York Life may request it later.
Finally, many applicants fail to check the correct box regarding backup withholding. This section is critical for tax purposes. Misunderstanding this requirement can lead to significant tax implications. Ensure that you read the instructions carefully and select the correct option based on your tax status.
Here are key takeaways for filling out and using the New York 20885 form:
How Do I Avoid Estate Tax in Ny - Discover the process for contesting an estate tax bill or seeking a refund through the New York ET-95 form, including required documents and deadlines.
Do I Need a Real Estate License to Rent Out Property - Learn how to appeal a Housing Court decision if the outcome is not in your favor, ensuring you understand your rights and next steps.
Notice of Appearance New York Supreme Court - Requires proof of service on relevant parties, emphasizing the importance of procedure in the appeal process.