Sometimes it takes the law a significant period of time to catch up with changes in society or public opinion. Such has been the case with the issue of legalization of marijuana and/or medical marijuana use. Though surveys and studies have shown for years that the majority of people are in favor of decriminalization of marijuana, at least to some extent, the laws across the United States are just beginning to reflect those opinions. Just as the laws have taken some time to catch up, insurance … [Read more...]
Minors Have Immediate Needs
If you are primarily responsible for a child or grandchild, one of the most important things that you can do is to plan for what will happen if you should suddenly pass away. You should make plans for the long term care and financial well-being of any minors that you care for. You should also make sure that the minors have quick and easy access to funds after you are gone. Many estate planning instruments require time to access. If you leave something to a minor in a Will, for example, then the … [Read more...]
Life Insurance and Final Bills: How It Works
Will your life insurance policy have to be used to pay off your final bills and debts? The answer to that question depends, in large part, on the beneficiary designation of your policy. Policy Payable to Estate There are two ways for your life insurance policy to be paid to your estate. First, you might actually designate your estate as beneficiary of your policy. Second, you might designate a person as beneficiary who dies before you. If this happens, and you don’t appoint a new beneficiary … [Read more...]
You Have a Plan for Your Assets, But What About Your Debt?
As a general rule, you can’t pass on your individual debts to your loved ones when you pass away, but what about joint debts or loans for which a loved one has co-signed? If you pass away, responsibility for paying these debts will fall to the person who signed for the debt along with you. And if this person is your spouse or one of your children, the consequences when you pass away can be devastating. The sad fact is that when a loved one is left on the hook for a credit card or loan … [Read more...]
Do You Need Life Insurance?
Life insurance can be a valuable estate planning tool. An insurance policy allows you to provide for your family after you’re gone, making funds available to cover short-term expenses, paying for your loved ones’ long-term needs, and leaving an inheritance for your children. But, do you really need it? Not everyone does, and the answer depends in large part on your financial situation and the size and needs of your family. Here are some factors to consider: Do you have dependents? … [Read more...]
The Irrevocable Life Insurance Trust
With the estate tax sure to make a comeback next year, estate tax planning is once again at the forefront of many peoples’ minds. And in calculating your gross estate for tax purposes, the IRS includes the value of any life insurance policies you own. For people whose life insurance policies drive the value of their gross estate into the taxable realm, an Irrevocable Life Insurance Trust (ILIT)can be an effective estate planning tool. How does it work? You establish an ILIT and name a … [Read more...]
