Can I set up a trust fund for my life insurance proceeds that will allow my wife to manage it for the purpose of taking care of my kids if 2 of them are over 18?
Question Details:
I have a terminal illness, Idiopathic Pulmonary Fibrosis. Due to my insurance being maxed out I will have medical expenses at the time of my death that would eat up more than half of my life insurance. I want to be able to protect my life insurance amount from my estate, because this is all my wife and kids will have to live on. My wife is now the beneficiary of my life insurance. What is the best way to protect the life insurance proceeds so my wife can control if for my kids, without it being left to my wife as she is my personal representative named in my Will.
The best way is to transfer it to trust. For a transfer to a trust ot be valid, you must survive three years past the transfer date. There are many different type of irrevocable trusts. You and your wife should sit down with an attorney who is very familiar with estate planning. You want to make sure that you do not cut off your children's ability to get finanacial aid. Thehere are issues to discuss with a lawyer. Also, perhaps it is most practical for your wife to be the primary beneficary abd the kids contingent?
