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Disbursing Life Insurance as a Trust for Minors

Chris — Mon, 12 Oct 2009 12:14:17 +0000

When setting up a disbursement arrangement for a life insurance policy, many of us certainly attempt to provide for children and grandchildren. Leaving insurance money to a minor can be a logistical nightmare, however, and there is a great deal of red tape that must be maneuvered. So how exactly can you do this without creating a financial nightmare for everyone involved?
One solution is certainly to hire a lawyer to act on behalf of the child, but this is costly and you will have no means of defending yourself against excessive charges. The simplest answer is to name a family member as executor of the funds, ensuring that they are able to sign all legal documents relating to the funds on behalf of the minor child. It is customary to offer some sort of monetary gift to reimburse the person for the burden, but it is not imperative.
Many seniors worry about leaving so much money to a child at once, or about placing control of the money in the hands of another party, whether or not they are related. The best solution to this is to set up a trust beforehand, ensuring that the funds are paid at certain times, rather than in one lump sum. This can prevent reckless spending on behalf of anyone involved and can help ensure that your child or grandchild is taken care of on a long term basis.
Leaving your policy or other assets to a minor is possible, and can be a wonderful decision. You will simply need to exercise a bit of caution when doing so. Taking the steps needed to ensure that your loved ones are cared for is always a good idea, and creating a trust or naming a trustworthy executor can always help to ensure that your assets and their disbursal are handled properly.

Do you need more life insurance?

Chris — Mon, 05 Oct 2009 12:01:46 +0000

Life insurance is something that far too few people think about these days. While death is certainly an unwelcome subject for many of us, the truth is that it is an inevitability. Taking out a life insurance policy can have many benefits, including allowing your heirs to pay for funeral costs and to meet any expenses left by your estate, such as property taxes, mortgages, and property transfer fees. The average funeral today can cost over ten thousand dollars, and the truth is that many families simply cannot afford to meet these costs.
When you choose a life insurance policy, you will have many different options available to you depending on your age and health. A term policy covers you only for a certain time period, while standard policies are in effect for the remainder of your life. The premiums that will need to be paid rely on a variety of factors, and many policies offer payouts based on age and the amount of time that the policy has been active. The simple truth is that a life insurance policy is very important and that every senior should have one. In fact, it is recommended that all working people carry them as well.
Death is rarely something that can be predicted or planned, and providing for your family or for those who will care for your estate when you have passed away is important. Many of us do not realize the amount of debt that is left behind when a loved one passes away, but the amounts can be devastating for survivors. A life insurance policy can provide all or part of the amount that is needed to protect your loved ones when you are no longer here to do so. Taking the time to apply for and obtain a policy is one of the best decisions you can make to help protect those you love.