Transcript
If you’ve named your kids as beneficiaries on your life insurance and retirement accounts it may not be enough, it may be, but it may not be enough.
Here’s two scenarios where it probably won’t work really well.
- Number one: if your kids are under the age of eighteen if they’re under the age of eighteen those assets can’t be paid directly to them and those assets are probably going to get swept into a probate court process which is going to make things expensive time-consuming and cumbersome
- Number 2: When you name them as beneficiaries that money goes to them directly and once it does it’s available to their creditors if they ever get sued and if they are married and getting divorced that money can be lost so often.
A better way to set things up is through a living trust and make the trust the beneficiary of the life insurance and the retirement accounts.
That’s something that we do with our clients on a fairly regular basis. It’s not something you want to try on your own but you want to work with an attorney who works in with trusts and names trusts as beneficiaries on a regular basis to make sure it gets set up properly.
