Secure Your Kid’s Future #estateplanning #assetprotectionplanning #irrevocabletrust

8 Apr 2023 · 1 min

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The speaker warns that a surviving spouse’s future remarriage could jeopardize a woman’s intended inheritance for her children if she dies first. To safeguard the children’s share, she advises creating a protected trust—either through a will or a lifetime trust—that designates the trust as the primary beneficiary of a life‑insurance policy. Upon the woman’s death, the policy proceeds fund the trust, which then holds and invests the money. The trust can distribute the assets to the children in staged payments over their lifetimes, while the investment income can be directed either to the surviving spouse or retained for the children. This structure ensures the children receive the intended inheritance regardless of the surviving spouse’s later actions.

Chapters

There's a very good chance your husband's next wife could ruin your inheritance plans if you were to die first. Ladies, here's what you can do about it. Write this down. Either in your will or a trust created during your lifetime, state that at your death, a protected trust will be created for your kids. Into this trust will go life insurance policy proceeds from a policy you took out that names the trust as the primary beneficiary. That trust will hold that money and pay it out to your children at various stages during their lifetime. The income from the investment of that money can either go to your surviving spouse or be kept into the trust for your kids. This will ensure that your kids will receive the inheritance you want them to receive regardless of what happens to your surviving spouse down the road.