Life Insurance Beneficiary Trust at Life

Life Insurance Beneficiary Trust. This can be a good idea if you want the money to go to a child. Pros of listing a trust as your life insurance beneficiary.

Before then, the trustee can spend it on things like education and day to day living costs of the minor. Beneficiaries may be legal entities, organizations or individuals with a substantial interest in the policy’s proceeds. Again, if you choose to pursue this strategy, then one or both of the trusts should be the beneficiary of the life insurance policy.

You have been named Executor/Executrix of a Will What now?

You can choose a spouse, child, relative, friend, secret lover, or any other person you happen to know to benedict from your life insurance policy. Second, if established as an irrevocable trust, it takes away death assets from the estate. By far the biggest disadvantage to naming a trust as life insurance beneficiary is that rusts needs to be administered, which takes time. Beneficiary considerations if you have comfortably less than $4 million in assets when you include the death benefit of your insurance policy, then estate tax will not be a consideration for you.