ordinarily term life assurance policies or endowment policies are not exempt from bankruptcy and are normally passed over to the trustee. If a policy has been assigned or charged to the lender in connection with a mortgage or secured loan, it will be treated as part of the security and not be passed over to the trustee. If a third party is named as a beneficiary, the policy does not normally vest with the trustee. If the client was originally the beneficiary under the policy and the transfer of the right to receive the proceeds is a transaction at an undervalue, the trustee may claim the benefit of the policy. |