- 4,990
No, a trust for his 3 offspring
Helping a friend for term.. etc
- Thread starter PhxSunsFan
- Start date
No, a trust for his 3 offspring
- Thread starter
- #13
PhxSunsFan
Guru
- 602
husband doesnt mind the wife will control the money... no other person is avail. thinks she will be frugal with the proceeds.. kids are now 2,4 and 6.. in 30 years they will be able to fend.. etc..
I like 30 yr level nationwide.. 38.00 a month for 250k 20 yr is 24.50 or 35.00 for 400k.
are there cheaper carriers?? is 25 years also avail??? thanks
I like 30 yr level nationwide.. 38.00 a month for 250k 20 yr is 24.50 or 35.00 for 400k.
are there cheaper carriers?? is 25 years also avail??? thanks
- 2,301
Make sure Dad is issued before applying for kids. Kids cannot be insured for more DB than parent. Personally, I always write UL on children. Premium stays same, lasts longer before any need to increase premium, has some cash value if needed.
- 4,990
Name the kids directly before you name the ex-wife & if you are against him having a trust.
While naming her could turn out OK, it doesn't always. If the ex wife ends up being in a bad marriage after receiving a lump sum, her new husband will get half in a divorce or help her excessively spend it. If she has financially issues or a lawsuit, her creditors can take the cash.
Naming the kids directly will force the money to be accounted forby the probate court each year while they are minors. The appointed Guardian will be required to spend on behalf of the kids
PS. The trust also would handle other items like work retirement accounts, group life, bank accounts, etc.
- 10,806
This x 1,000,000
If the money is for the kids, name the kids as beneficiary. Period. End of discussion.
Naming the kids means the funds will be controlled by whomever has custody of the kids.
What if the ex-wife dies? No guarantee the person who gets the kids also gets her estate. Naming the kids guarantees that money will go to the kids in that situation, and be ultimately controlled by whomever has custody of the kids.
There are so many potential issues that could arise to screw over those children if the ex is named Beneficiary. (that have nothing to do with the ex misusing the funds)
Also, its not like the wife doesnt control the money if the kids are named bene. Same result, just greater security for the kids.
And I second Ray's advice. You need to split this case, at least bring in an agent to consult and help behind the scenes, it doesnt mean they are sitting in with you client. There are a lot more potential pitfalls in this situation if you are not well versed in this. Find someone on the forum who specializes in life. Multiple people have already given you great advice.
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- 10,806
BTW. Bringing up these issues to the client will make him see you as an expert and will gain even more trust in this situation. Tell him "after reviewing the situation, there are some potential issues with this setup". You will gain more respect.
- 26,079
We have insurance for the things that go wrong.
X3
I recommend he contact @Tahoe Ray. I have split or sent him personal clients.
- 4,990
Yes we do, but we dont have insurance to protect against all the divorce/credit/bankruptcy items mentioned in this thread about hoping an ex-wife is alive, not in a bad marriage, not in credit or lawsuit problems & not on a spending spree with her kids money
- 26,079
Yup I have seen it.
Buy a bigger house and car they could not have afforded when daddy was alive. Suddenly rolling large. Then a few years later an equity loan ........
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