Would you put the person you trust on a life insurance policy as a contingency...?

Question

to recieve 1 million dollars to take care of your children ? and trust them to use it the correct way incase you and your husband passed away ?

If you wanted a certain amount to go to college and cars or homes how would you go about it to make sure your wishes are taken through. or just say here 1 million do what you need to do to take care of children ? Do I need a lawyer will to carry this out. What would you do ?

Answer 1

You will want to set up a revocable trust to be funded by the life insurance proceeds. You can put provisions in the trust detailing how you want the money disbursed, such as a certain amount designated only for college. You can appoint your spouse as the primary trustee and "someone you trust" as a successor trustee.

The trust becomes irrevocable at death. The assets are distributed according to the trust directives and therefore are not included in probate.

Contact a certified financial planner for help and more details.

Answer 2

Well, sure, I have actually done this. BUT, there are some potential problems. Say you leave it to your brother. Now you kick off, and a year later, he kicks off. The money is NOW part of his estate. If he has no will, well, his WIFE gets it, or his kids, dependong on state law. And if he HAS a will, likely his wife gets it anyway. Now it's HERS to do whatever SHE wants with it.

Or he gets sued because of a really bad car accident - and it's attached by the court as part of his assets.

The proper way to do it, is set up a trust (your bank or lawyer can help you out with this) and make the trust the beneficiary of your will. Leave the trusted person as TRUSTEE of the trust.

Regarding leaving parts to other people - it's easy. Just leave 95% to the trust, 2% to the church, 1% to the cleaning lady, split it out that way. You really can't rely on one person to "distribute" money the way you want. Once the money is theirs, it's theirs. Period.

Answer 3

You have no choice but to list someone you trust to take care of your children .
The option would be What ? Go to the prison & pick someone else out ?

What you never do , is tell persons in advance about $$$$ you are designating to them .
Also , there should be an estate manager that would monitor the care provided the minors .

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Answer 4

yes~ since minors can't be the beneficary on a life insurance
policy its good to have 2 people. my first is my husband and
if we pass at the same time, my sister gets the money to
take care of my kids. i just actually changed this a few weeks
ago because i forgot that i had my mother as the 2nd one
and she passed away 4 years ago. if you and your husband
pass at the same time and you don't have anyone else listed
the bank will put a hold on that money and decide where it
goes.