Avoid Mistakes and Manage Life Insurance Benefits Properly
One of the biggest mistakes individuals with life insurance policies make is naming minor children as direct policy beneficiaries. Minors cannot receive life insurance directly, and the family is likely to suffer lengthy delays and costly proceedings as courts decide who to appoint as custodian over the funds. This means it may be years before children intended to be supported by an insurance policy ever see a benefit.
Proper use of a trust allows the benefit to be made available quickly and can avoid courts and other government proceedings. Most importantly, it allows you to choose a person you trust to handle the money. Trusts even allow you to instruct the trustee on how the money should be managed and used. This can be important even with young adult beneficiaries to ensure, for instance, that the money pays for college and not a new motorcycle, or that the lump sum is provided as an income over time instead of all at once.
Use a Life Insurance Trust to ensure any benefit payments are handled the way you would want them to be handled. You can even expand the trust to cover other types of property.
– 30 Minute Phone or In-Person Consultation with Attorney –
– Personalized Instructions on Funding Your Trust –
– Trust Documents –
Name Your Trustee
Define How and When Benefit will be Distributed
Amendment Form to Add More Property to the Trust Included
* $599 payment includes the items listed above for a trust for either a married couple or one single individual as grantor(s) with up to six beneficiaries, one trustee, and a life insurance policy as the trust property. Additional fees and add-ons are available for pour-over wills, complex trust structures, an irrevocable trust to avoid estate taxes, and other estate planning tools. Representation does not commence until Napolitano Law Office has receive your signed and completed Engagement Agreement, and the scope, nature, and terms of representation are governed by the Engagement Agreement. This product is for simple trusts and is not appropriate for complex matters involving multiple types of property, conditional benefits, classes of beneficiaries, or other complications as Napolitano Law Office shall deem beyond the scope of this package. If Napolitano Law Office deems that a purchaser’s project is outside the scope of this package, purchaser will be notified in writing of the reasons for that determination and will be given the option to either expand the representation accordingly or to receive a refund of any unearned portion of the payment.