Life Insurance – Who Is Your Beneficiary?
Most people will answer that question by saying, “My spouse.” That makes sense. In a marriage, if one mate dies, the bulk of the estate goes to the surviving mate. However, complications arise when both mates die at the same time or within a short period of time. How can changing your beneficiary correct these issues and provide other heirs, especially your children, with the benefits of some additional precaution?
The Primary Beneficiary – Your Revocable Trust
One way to get around these issues is for both spouses to change their primary beneficiary to a revocable trust. In case one mate dies, the other will have fast access to the trust, so changing the beneficiary doesn’t affect how soon the money is available. In the case of both mates passing at the same time, kids (especially minor children) don’t have to worry about things like not getting anything until they turn 18 or seeing the money go through probate and having to pay court fees. This also means that if only one parent passes away and the other doesn’t transfer the money to a trust right away (these things can be tough to deal with at the moment), and then the second parent passes away not long after, none of the aforementioned issues arise. All of this can be avoided by changing the primary beneficiary on the policies.
Smart Estate Planning Advice to Protect Your Heirs
The estate planning attorneys at Petrov Law Firm can help you to effectively settle your affairs in a way that will bring benefits to those who stand to inherit your assets. To schedule a consultation, call 619-344-0360.