Prospect Wants his Young Kids As Bene...and They Live in Aruba.

[Jerard]

Wanting to get some feedback on this situation. He wants about 500K and have his kids (both under 5) to be the bene's. I use TA for term and when I called them one of their UW's suggested he see a lawyer and create a trust...but she wasn't real sure on that. I'd appreciate any input if anyone has had any experience in a similar situation before.

 

[STIBROKER]

Wanting to get some feedback on this situation. He wants about 500K and have his kids (both under 5) to be the bene's. I use TA for term and when I called them one of their UW's suggested he see a lawyer and create a trust...but she wasn't real sure on that. I'd appreciate any input if anyone has had any experience in a similar situation before.

well she could set up a irrevocable trust but the crummy letters and gifting the prem is a pain.......the rule of thumb is making the people they named in the will to take care of the kids as benie's......other wise the kids will not see the money until age 18...and then you give a 18 yr old $250,000 THEN THAT COULD RUIN their life......

 

[Tahoe Ray]

Wanting to get some feedback on this situation. He wants about 500K and have his kids (both under 5) to be the bene's. I use TA for term and when I called them one of their UW's suggested he see a lawyer and create a trust...but she wasn't real sure on that. I'd appreciate any input if anyone has had any experience in a similar situation before.

Yes....set up a trust.

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well she could set up a irrevocable trust but the crummy letters and gifting the prem is a pain.......the rule of thumb is making the people they named in the will to take care of the kids as benie's......other wise the kids will not see the money until age 18...and then you give a 18 yr old $250,000 THEN THAT COULD RUIN their life......

No reason to deal with all that unless you need it to be outside of the estate.

 

[STIBROKER]

No reason to deal with all that unless you need it to be outside of the estate.

true.............................................

 

[bill3173]

She needs to set up a trust or pick another beneficiary. I've dealt with this before, and hopefully your experience will be better than mine has been with these types of clients.

They want to leave large sums to babies, and don't have even a rudimentary understanding of what they're doing and the correct way to do it. I had one lady that called me to change the benes, change the %, change the benes again to include children under 5..at that point I directed her to a Trust advisor. He did manage to steal a policy from me, but at that point I didn't care that much.