Life insurance is often seen as a supplementary component to an existing estate plan because the proceeds from a life insurance policy that has been kept active could be used to provide liquidity when it is most needed.
Insurance money, for example, could help to keep other assets intact and pay immediate expenses such as an estate tax. Bear in mind that some of the biggest assets you may leave behind to your beneficiaries after you pass away are those that cannot easily be disposed of. It might also take time for family members to come to come to terms with selling or deciding to keep those various assets such as a home.
Life insurance errors can also wreak havoc on your estate plan if you have not properly thought through how to structure your policies. Some of the most common errors include:
- Carrying an inappropriate amount of insurance.
- It is important to review your policies once every three years or so.
- Naming only one person as the beneficiary.
- Naming the estate as the beneficiary, which officially puts the policy inside your estate.
Your entire estate plan might not revolve around just life insurance, but there’s a good bet that insurance is a component of it. If you’re ready to talk options, contact an experienced Massachusetts estate planning attorney today. Working with a financial advisor and an estate lawyer can help you with these issues.
Guardians or parents of special needs children have many different challenges and special concerns when it comes to estate planning. Some of the most important concerns have to do with what will happen to the adult child after the parents or guardian passes away. Thinking ahead involves careful consideration of the best tool for protecting your loved one’s interests without compromising any of the other benefits that your loved one may rely on. This is why you should consult with an estate planning attorney in Massachusetts as soon as possible about your options to learn more.
Some Tips for Selecting Insurance
There are several different kinds of insurance that can be helpful for individuals planning ahead for a special needs beneficiary. One of the most important aspects of opting to use an insurance policy to fund a special needs trust is ensuring that the appropriate death benefit has been linked to policy.
Protect Government Benefits
Government benefits could be in jeopardy if the special needs beneficiary is named as a person instead of having a trust created for their benefit. Life insurance can be a critical component of funds to be put into a trust for the benefit of a loved one with special needs. Planning ahead for a special needs beneficiary involves important consideration questions about not jeopardizing the beneficiary’s eligibility for government programs. Consulting with a knowledgeable estate planning attorney about your options is the best way to avoid problems.