Many young people and young couples don’t think much about estate planning because in our early life, we don’t have much property or funds with which to plan! For those young couples or individuals with children, money is probably even more thin. These young people and young couples likely need estate planning more than they know. What happens to your kids or spouse should something happen to you? Admittedly, it is not fun to think about, but why leave the burden to your loved ones? So many couples now have both spouses working and removing one of the streams of income can be devastating. I know I wouldn’t want an unexpected fifty percent reduction in my income – no matter what point I was at in my life. Not only is an income stream now gone, but there will likely be other short-term expenses such as medical, funeral, living expenses, and other bills.
Life insurance is a brilliant Estate Planning tool. For the young person or young couple (or anybody really), life insurance can be utilized to provide funds where none may otherwise exist.
Life insurance can create an estate that was not otherwise present.
Life insurance can “fund” a Living Trust for the benefit of your family and used to help take care of a variety of things including:
While you can designate a beneficiary of the life insurance policy without creating an Estate Plan, there are other considerations. Having the Trust as the beneficiary of the policy proceeds provides all of the normal protections that a Revocable Living Trust provides. Utilizing a Living Trust (or potentially an Irrevocable Trust) is better than naming a beneficiary for several reasons. What happens of you and your spouse die simultaneously? What if your kids are minors? Without a proper Estate Plan, court proceedings will need to be instigated where there are minor children that are to receive property. A Living Trust can help protect your beneficiaries from losing half their inheritance due to a bad marriage, or other predators.
Please feel free to give me a call and we can establish your Living Revocable Trust or other estate planning objectives today. If you have specific estate planning goals, I can help create solutions you may not be aware of.
See lots of estate planning information on my website at: www.myestate-plan.com
Thanks for reading my blog.
William Daniel Powell
This document is for informational purposes only. Nothing in this is to be considered legal advice. Nothing in this shall create an attorney/client relationship, nor shall it create a confidential relationship. If you need legal advice (in California), feel free to contact me or someone licensed to practice in your jurisdiction. I assume no liability or responsibility for actions taken, or not taken, as a result of reading this information.
Also, please remember that I speak in generalities in my blog and my website. There are so many different factors that can contribute and completely change the outcome that it would be impractical to discuss all of them here.