Too often, most families and businesses overlook life insurance beneficiary designations.
Please note I stated designations, not the beneficiaries themselves!
One consideration that can be easily used are Trusts. You do not have to be wealthy to put in a basic trust. One type of trust could be an Irrevocable Life Insurance Trust (ILIT). Here is how it works:
The insured, being the grantor, would gift the required premiums each year to the ILIT. The insured has no ownership in the life insurance policy.
Then, a person who ideally can be held without any financial interest to the ILIT, is named the trustee.
The ILIT is particularly valuable when the life insurance policy could be pierced by the government as a source of funds, such as long term health expenses. It can also help young beneficiaries to receive much needed funds for their support and education. Also, an ILIT can help reduce estate taxes because it is not in the insured's estate.
There are other valuable trusts that can be set up, with the help of a qualified family/estate attorney.
Please contact my office and we can approach your specific needs.