Many people have life insurance, and naming a beneficiary or beneficiaries on that life insurance policy is usually enough, especially if the beneficiaries named are over 19 and are responsible enough to receive that money. Our generation (28 – 45ish) being the couples with young children are for the most part very well insured.
Given the amount of life insurance these young couples have, I like to prepare Life Insurance Trust Declarations for these clients, which set out Trusts for minor or young adult beneficiaries, instead of relying on the insurance company designation forms which do not provide for more sophisticated estate planning. It is difficult to defer the age at which a child gets full control of the life insurance proceeds to an age later than the age of majority (19) without a Life Insurance Trust Declaration.
Do you want your child to potentially have control over hundreds of thousands, possibly millions, of dollars at age 19?
As with any Estate Planning, there are circumstances where Life Insurance Trust Declarations will not be appropriate for clients, but it usually suits couples with young children very well.
This is provided as information ONLY; it should NOT be construed as legal advice. You should consult with a lawyer to provide you with specific advice for your own situation. For more information on estate planning and to discuss your specific circumstances, please contact Vanessa DeDominicis on 250-869-1140 or [email protected]. Vanessa practices in the area of Wills and Estates at Pushor Mitchell LLP in Kelowna and would be more than happy to assist you.
