InsuranceActs

As a parent you want your children to live their lives to the fullest. You can make sure that they will, by passing wealth to your children through life insurance trust.

To create a life insurance trust you need:

• Purchase a permanent life insurance policy. The best life insurance policies for trust planning are Whole life or guaranteed Universal life. By creating a trust, your children will beneficiaries on your policy.
• If you currently have term-life insurance you need to convert it into the appropriate permanent coverage.
• Meet with an attorney to plan the trust for your children. The attorney will guide you in making important decisions regarding estate taxes and will help you to design the trust the right way.  You need to know that the process of designing a trust is not fast, for most attorneys it will take several weeks to execute the document. It is very important that you fully read and understand the trust before signing it since it is permanent.
• Select good trustees for your trust that will manage the funds after you pass away and will separate assets between your children per listings in the trust document. Selecting a trustee is very important part of the process since they are the ones who will be working with your children in the wealth allocation process.