If you have diligently searched through your deceased loved one’s financial records, tax returns, personal possessions, and safe deposit boxes, and you still cannot identify and locate your decease loved ones’ life insurance policies and annuity contracts, the National Association…
While there may be many reasons not to take a look at your life Insurance portfolio; you don’t really like thinking about life Insurance, you don’t understand it, you don’t want to sit down with a life Insurance salesperson that’s…
Henry Montag, CFP, CLTC, is a guest author for the Russo Law Group P.C. blog. If you purchased your Life Insurance anytime from the mid 80’s through 2005 there’s a 45% chance that the type of life Insurance you purchased was…
Henry Montag, CFP, CLTC, is a guest author for the Russo Law Group P.C. blog.
Do you want to establish a trust? There are many different reasons people do so:
- Some people do it for the management aspects to make sure their assets will be properly invested and not squandered away by a spendthrift child or spouse. Other people want to make sure that, if sued, their assets are protected from the claims of a creditor – and others do it for tax purposes.
- A parent or grandparent may establish a life insurance trust to provide an inheritance earmarked for the next generation, or to make certain that their child’s assets are protected in the event of a divorce.
- Trusts can also be set up to provide for the welfare of a child with or without special needs for a variety of reasons such as providing for their educational fund or giving birthday, graduation or wedding gift even after the grantor has passed away.
- A trust is also an excellent way to make a charitable bequest to assure your legacy and what is important to you will always be remembered.
While there are many factors for an individual or family to consider the benefits of establishing a trust, it is equally important that grantor’s/parents review the trusts they have chosen and make certain that the trustees are knowledgeable about their duties and are continuously still operating in the beneficiary’s best interest.