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The New York 20885 form is essential for individuals looking to designate a trust as a beneficiary for life insurance and annuity policies. This form is specifically designed for trusts that are not testamentary, meaning they are not created within a will. It requires completion of ten key items on the first page, including details about the proposed insured, policy numbers, and trust information such as the trust name and date. Additionally, the form mandates the inclusion of signatures from trustees, affirming their authority to act on behalf of the trust. For those managing in-force policies, supplementary forms like the Change of Beneficiary (21131) and Transfer of Ownership (21132) must also be utilized. It is important to note that New York Life reserves the right to request a copy of the trust agreement to ensure compliance. The completed form must be returned to the appropriate New York Life service center based on the policy type and the owner's state of residence. This structured approach ensures that all necessary information is provided, facilitating a smooth process for establishing trust as a policy beneficiary.
Similar forms
- Change of Beneficiary Form (21131): This document is used to change the designated beneficiary of a life insurance policy. Similar to the New York 20885 form, it requires specific information about the policy and the beneficiaries involved.
- Transfer of Ownership Form for Life Policies (21132): This form facilitates the transfer of ownership of a life insurance policy. Like the 20885, it necessitates details about the trust and the parties involved, ensuring proper documentation of ownership changes.
- Transfer of Ownership Form for Annuity Policies (22599): This document serves a similar purpose for annuity policies. It also demands comprehensive information about the trust and the beneficiaries, mirroring the requirements found in the 20885 form.
- Trust Certification Form: This form is used to verify the existence and terms of a trust. It parallels the 20885 in that it requires confirmation of the trust's validity and its relationship to the insurance or annuity policies.
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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
•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.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):
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RETURN FORM TO: |
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For Variable Life and Variable Annuity policies: |
New York Life, Variable Products Service Center |
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Madison Square Station, PO Box 922, New York, NY 10159 |
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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
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.
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Date |
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Grantor(s) signature |
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Grantor(s) signature, if required |
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Date |
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Trustee(s) signature |
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Trustee(s) signature, if required |
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Date |
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Proposed Insured(s)/Insured(s)/Annuitant(s) signature |
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Additional Signature, if required |
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Date |
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Applicant(s)/Owner(s) signature, if other than above |
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Additional Signature, if required |
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If the indicated policy is
Print Name & Title of OfficerPrint Name & Title of Officer
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Date |
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Officer’s Signature |
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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
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Agent/Registered Representative’s Signature |
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Date |
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20885 (1/10) Page 3 of 3
Common mistakes
Filling out the New York 20885 form can be a straightforward process, but many individuals make common mistakes that can lead to delays or complications. One frequent error is failing to complete all required items on the first page. Items 1 through 10 must be filled out entirely. Omitting any details, such as the trust name or the relationship of the trustee to the insured, can result in the form being returned or rejected.
Another common mistake involves the signatures. The form requires specific signatures from all trustees, unless the trust agreement states otherwise. If there are multiple trustees, each must sign the applicable forms. Neglecting to secure these signatures can create legal issues and may prevent the processing of the form.
People often overlook the importance of providing accurate taxpayer identification numbers. The IRS mandates that the named owner complete this section. Errors in this part can lead to backup withholding or other tax complications. It is crucial to double-check that the Taxpayer Identification Number entered is correct and that all necessary certifications are made.
Furthermore, many individuals do not attach the necessary trust documentation when submitting the form. If the owner is a trust and the form is completed without an agent, a copy of the trust agreement must be provided. Failing to include this documentation can cause delays in processing or result in the form being deemed incomplete.
Finally, some applicants misinterpret the instructions regarding the return addresses. Depending on the state of residence, the form must be sent to the correct service center. Misaddressing the submission can lead to significant delays, as the form may be sent to the wrong location, requiring resubmission. Ensuring that the form is returned to the appropriate address is essential for timely processing.
More About New York 20885
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What is the purpose of the New York 20885 form?
The New York 20885 form is used to designate a trust as the beneficiary of life insurance and annuity policies. It is specifically designed for trusts that are not testamentary, meaning they are not created within a will. This form ensures that all necessary information regarding the trust and its beneficiaries is documented properly.
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Who should complete the New York 20885 form?
The form should be completed by the owner of the life insurance or annuity policy if the owner is a trust. If an agent is assisting with the process, they must also complete the Agent Certification section on page three. It is essential that items 1-10 on the first page are filled out completely for the form to be valid.
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What information is required on the form?
Items 1-10 must be completed, which include details about the proposed insured, policy numbers, trust name, trust date, state where the trust was established, beneficiaries of the trust, and the relationship of the beneficiaries and trustees to the insured. If there are multiple trustees, all must sign the necessary forms unless the trust document specifies otherwise.
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Where should the completed form be sent?
The mailing address depends on the type of policy and the state of residence. For variable life and variable annuity policies, send the form to the New York Life Variable Products Service Center in New York. For all other policies, the destination varies based on the state: certain states have a Cleveland Service Center address, while others should be sent to the Dallas Service Center. If the address is foreign, either location can be used.
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What happens if the trust is not in effect at the time of the insured's death?
If proof is received that the trust is not in effect when the insured passes away, the proceeds will be paid to the contingent beneficiaries, if any. If no contingent beneficiaries exist, the proceeds will go to the owner or, if the owner is deceased, to the owner’s estate.
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What certifications are required by the IRS?
The IRS requires the policy owner to provide their Taxpayer Identification Number and to certify whether they are subject to backup withholding. This certification is crucial for compliance with tax regulations and must be completed accurately to avoid any penalties.
Misconceptions
Misconceptions about the New York 20885 form can lead to confusion and errors in the application process. Here are ten common misunderstandings:
- This form is for Testamentary Trusts. The New York 20885 form is specifically for trusts other than testamentary trusts. Using it for testamentary trusts is incorrect.
- All sections of the form can be left blank. Items 1-10 on page one must be completed in full. Incomplete forms will delay processing.
- A copy of the trust agreement is not necessary. If the owner is a trust and completing the form without an agent, a copy of the trust agreement is required.
- The agent does not need to sign the form. If an agent assists with the form, the Agent Certification section must be completed and signed.
- The form can be submitted to any New York Life location. The form must be sent to the appropriate service center based on the policy type and the owner's state of residence.
- Trustees can act independently without any documentation. If there are multiple trustees, all must sign unless the trust document states otherwise.
- The trust must be irrevocable to use this form. Both revocable and irrevocable trusts can use the New York 20885 form.
- The insurer will automatically pay the trust as beneficiary. If the trust is not in effect at the insured's death, proceeds will go to contingent beneficiaries or the owner's estate.
- There are no tax implications when using this form. The IRS requires the owner to provide a Taxpayer Identification Number and certify backup withholding status.
- Once submitted, the form cannot be changed. The owner retains the right to change the beneficiary designation at any time, even if stated otherwise in the trust agreement.
Understanding these misconceptions can help ensure the proper use of the New York 20885 form and facilitate a smoother application process.
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Key takeaways
When filling out and using the New York 20885 form, it's essential to keep several key points in mind:
- Purpose of the Form: This form is specifically designed for life and annuity policies, including both new applications and changes to existing policies.
- Trust Requirements: Ensure that you do not use this form for testamentary trusts, which are created within a will.
- Complete All Required Sections: Fill out items 1-10 on the first page completely. Missing information can delay processing.
- Signatures Needed: Page three requires signatures from all relevant parties. If an agent assists you, they must also sign the certification section.
- Trust Documentation: If the owner is a trust, provide a copy of the trust agreement if completing the form without an agent. New York Life may request this documentation at their discretion.
- Submission Locations: Be aware of where to send the form based on your state of residence. Different addresses are designated for variable and non-variable policies.
By keeping these takeaways in mind, you can navigate the process of filling out the New York 20885 form with greater confidence and clarity.
New York 20885: Usage Guide
Completing the New York 20885 form involves several important steps to ensure that all necessary information is accurately provided. This form is essential for establishing a trust as a beneficiary for life insurance or annuity policies. Follow the steps below to fill out the form correctly.
- Begin with the first section titled "PROPOSED INSURED(s)/INSURED(s)/ANNUITANT(s)" and fill in the required names.
- In the second section, enter the relevant "POLICY NUMBER(s)" associated with the insurance or annuity.
- For the third item, affirm that the Trust Agreement created by the Grantor is in effect. Include the name of the Grantor/Settlor/Trustor.
- Next, provide the "Trust Name" in the fourth section.
- Indicate the "Trust Date" in the fifth section.
- Specify the "State where Trust Established" in the sixth item.
- List the "Beneficiary(ies) of Trust" in the seventh section.
- Describe the "Relationship of Trust Beneficiary(ies) to Proposed Insured(s)/Insured(s)/Annuitant(s)" in the eighth item.
- Provide the "Name(s) of Trustee(s)" in the ninth section. If there are multiple trustees, ensure all sign the necessary forms unless stated otherwise in the trust document.
- Finally, indicate the "Relationship of Trustee(s) to Proposed Insured(s)/Insured(s)/Annuitant(s)" in the tenth section.
Once all items from 1 to 10 are completed, proceed to page three to secure the required signatures. Ensure the Agent Certification section is filled out if an agent assisted you with the form. If the owner is a trust, attach a copy of the trust agreement if necessary. After completing the form, return it to the appropriate New York Life Service Center based on your location.