The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
Subchapter
001
:
GENERALLY
(Cite as: 8 V.S.A. § 3704)
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§ 3704. Trust agreements
A life insurance company chartered by and doing business in this State shall have
power and authority to hold in trust or otherwise the proceeds of any life insurance
policy or annuity issued by it upon such terms and subject to such conditions and
limitations as may be agreed upon in writing by such company and the owner of the
policy or the purchaser of the annuity. The contract, policy, or trust instrument
may provide that no payments of interest or of principal shall be in any way subject
to the claims of the creditors of the person entitled to any part of the proceeds
so held or to his or her debts, contracts, or engagements, or to any judicial process
to levy upon or attach such proceeds for payment of such claims or demands, and that
the person entitled to any of the proceeds so held shall not be permitted to commute,
anticipate, encumber, alienate, or assign the same or any part thereof or the interest
thereon. Such life insurance company shall not be required to segregate the funds
so held but may hold them as a part of its general corporate assets. Nothing in this
section or in the trust or other provisions herein contemplated shall subject such
life insurance company to the provisions of the law of this State relative to banks
or trust companies. (Added 1967, No. 344 (Adj. Sess.), § 1 (ch. 2, subch. 1, § 4).)