§ 13-3.3 Designation of trustee to receive proceeds of thrift, savings,

pension, retirement, death benefit, stock bonus and

profit-sharing plans, systems or trusts, of life, group life,

industrial life or accident and health insurance policies and

of annuity, endowment and supplemental insurance contracts,

and taxation thereof

(a) The proceeds of thrift, savings, pension, retirement, death
benefit, stock bonus and profit-sharing plans, systems or trusts, of
life, group life, industrial life or accident and health insurance
policies and of annuity, endowment and supplemental insurance contracts
(hereinafter referred to as "proceeds") may be made payable to a trustee
designated as beneficiary in the manner prescribed by this section and
named as:

(1) Trustee under a trust agreement or declaration of trust in
existence at the date of such designation, and identified in such
designation, and such proceeds shall be paid to such trustee and be held
and disposed of in accordance with the terms of such trust agreement or
declaration of trust, including any amendments thereto, as they appear
in writing on the date of the death of the insured, employee or
participant. It shall not be necessary to the validity of any such trust
agreement or declaration of trust that it have a trust corpus other than
the right of the trustee as beneficiary to receive such proceeds.

(2) Trustee of a trust to be established by will, and upon
qualification and issuance of letters of trusteeship such proceeds shall
be payable to the trustee to be held and disposed of in accordance with
the terms of such will as a testamentary trust. A designation which in
substance names as such beneficiary the trustee under the will of the
insured, employee or participant, shall be taken to refer to the will of
such person actually admitted to probate, whether executed before or
after the making of such designation.

(b) If no qualified trustee claims such proceeds from the insurer or
other payor within eighteen months after the death of the insured,
employee or participant, or if satisfactory evidence is furnished to the
insurer or other payor within such period showing that there is or will
be no trustee to receive such proceeds, such proceeds shall be paid by
the insurer or other payor to the personal representative or assigns of
the insured, employee or participant, unless otherwise provided by
agreement with the insurer or other payor during the lifetime of the
insured, employee or participant.

(c) Except to the extent otherwise provided by the trust agreement,
declaration of trust or will, proceeds received by the trustee shall not
be subject to the debts of the insured, employee or participant, to any
greater extent than if such proceeds were payable to the beneficiaries
named in the trust, and for all purposes including transfer or estate
tax purposes they shall not be deemed payable to or for the benefit of
the estate of the insured, employee or participant.

(d) Proceeds so held in trust may be commingled with any other assets
which may properly become part of such trust.

(e) Nothing in this section shall effect the validity of any
designation heretofore made of the trustee of any trust established
under a trust agreement or declaration of trust or by will.

(f) This section shall be construed as declaring the law as it existed
prior to its enactment and not as modifying it.