3 Times You May Want a Trust to Be a Life Insurance Beneficiary

3 Times You May Want a Trust to Be a Life Insurance Beneficiary

At Petrov Law Firm, we see each of our clients as an individual. As a result, we help you to determine what is best of you and your beneficiaries. For some families, leaving a life insurance policy to a trust as a beneficiary is a good idea. Here are a few situations where this method works well:

• Your beneficiaries are minor children – If your kids are under 18, they won’t get your life insurance policy until they come of age anyway. Having the money go directly into a trust can allow a trustee to dispense some money to the children as needed such as for new outfits at the beginning of the school year.
• You want to avoid executor and court fees – If your estate ends up in probate court for any significant amount of time, a good portion of the assets can go toward court fees and executor expenses before your family sees any of it.
• You are concerned about the simultaneous death of yourself and your beneficiary – Let’s say the person you were going to name as your life insurance policy beneficiary is someone who is always traveling with you. What happens if you die together in some sort of travel-related accident? Having the money go into a trust is a good way to ensure it passes on to your other family members.

Personalized Estate Planning in San Diego, California

Let our professional estate planning attorneys help you to determine what methods will meet your family’s needs. Call 619-344-0360 to schedule a consultation today.