Assets of a life ins policy owned by a Trust was moved into a new policy (same co., and directly moved) to purchase a Long Term Care policy.  Will all of that be taxable?

Also, since the annual deductible amount for LTC insurance is much less than the amount used to purchase the LTC policy (apparently paid in full for life since the assets are well over $100K, how does the taxpayer get to deduct the rest on Schedule A....over a number of years???