In Georgia, what qualifies a trust to own a life insurance policy?

In Georgia, a trust qualifies to own a life insurance policy when it meets specific IRS requirements. These requirements are pivotal because the Internal Revenue Service sets rules that dictate how trusts must be structured and managed, particularly regarding taxation and the treatment of life insurance proceeds. When dealing with life insurance within a trust, it is essential that the trust meets these IRS guidelines to ensure that the life insurance benefits are properly handled for tax purposes and that they align with the grantor's intentions.

Trusts particularly benefit from being structured as irrevocable life insurance trusts (ILITs), which can provide significant tax advantages, such as protecting the death benefit from being included in the grantor's taxable estate. This shows the importance of understanding the interaction between life insurance policies and trusts in the context of estate planning and taxation.

The other options do not reflect the legal requirements for a trust owning a life insurance policy. Trusts do not necessarily need to have multiple beneficiaries or be established by a licensed agent, nor do they require a minimum existence period of five years to hold a life insurance policy. Hence, the focus on meeting IRS requirements is key for ensuring compliance and achieving the financial outcomes intended by establishing a trust for life insurance purposes.