Hi there Bridget Mackay in Petaluma, California. I’m an attorney and practice in the area of estate planning and elder law.
And, today I want to direct this video blog to young families and talk a little bit about how a life insurance policy can maybe help fund an estate plan for a young family.
If you looked at some of my earlier blogs, I talk about what some of the necessities are things that parents of young children should think about in planning for their children. And, a lot of young families don’t have a lot of equity built up in their lives. Maybe a small 401k or IRA. Maybe a house, but you don’t have a lot of equity in it. And some of you may have life insurance policies which are huge, and we get these to take care of our family if the something tragic happens to us. And, these are a good tool to plan to care for your minor children if something were to happen to you or your spouse.
Now not every life insurance policy is the same. So, I recommend you talk to a trusted life insurance broker. But some of the planning tools that you can use for it is if you make your trust. If you create a trust and in that trust you’ve designated how you want your assets spent for the benefit of your children over their lifetime. You can make the trust the beneficiary of your life insurance policy. If you end up getting a will and you also in it place a trust for your children to be cared for financially for the rest of their lives. You can make your estate as the beneficiary of your life insurance policy.
So, there’s a lot of ways that you can use a life insurance policy with your estate plan, whichever you choose a will or a trust. But the bottom line is, please don’t do any of this planning or make any of these designations unless you’ve talked to an experienced attorney.