As a trust lawyer helping Riverview families plan for the future, I’m often asked: “Should I just name my kids as my life insurance beneficiaries?” My answer might surprise you—there’s actually a better way that provides much more protection for your children.
Why Direct Beneficiary Designations Fall Short
Did you know insurance companies can’t pay proceeds directly to minors? That means if something happens to you, the court will likely appoint someone to manage that money until your kids turn 18. Then, guess what? They get all the money at once, with no strings attached. Not ideal for most 18-year-olds I know!
The Trust Advantage: Protection with Flexibility
Naming a trust as your life insurance beneficiary instead creates a safety net that works exactly how YOU want it to:
- No Court Hassles: Your chosen trustee can access funds immediately to care for your children
- Your Rules Apply: You decide when and how the money gets used – for education, housing, special occasions, or whatever matters to your family
- Long-Term Protection: The trust can protect the money from your children’s potential creditors, divorce, or just plain bad decisions
- Custom-Tailored Plan: Whether you want to distribute funds at certain ages or milestones or provide for a child with special needs, your trust can be designed around your family’s unique situation
Setting It Up Right Is Easier Than You Think
Creating this protection doesn’t have to be complicated. We’ll help you:
- Choose the right type of trust for your situation
- Select a trustee who will honor your wishes
- Create clear, flexible instructions that grow with your children
- Make sure everything works together seamlessly with your other estate documents
Peace of Mind That’s Priceless
Every family’s situation is unique, which is why cookie-cutter solutions rarely work. But I’ve seen firsthand how this simple change to your beneficiary designation can make all the difference for the people you love most.
Have questions about setting up a trust for your life insurance? As both a parent and grandparent myself, I understand the importance of protecting your family’s future. Our team at the Law Offices of Laurie E. Ohall is ready to help at (813) 438-8503. Let’s talk about how we can help protect what matters most to you!