Naming Children as Life Insurance Beneficiaries
- Create a Trust: a trust may be created that names your children as beneficiaries. As with any other type of trust, you may make provisions that allow the trustee to distribute funds on behalf of your minor children. The proceeds of the trust may be transferred to your children when they reach an age that you specify. As with all types of trusts, the decisions that you make when setting up the trust will have significant tax and financial implications for your heirs.
- Include Unborn Children: it is important that you do not exclude any children yet to be born from your life insurance policy if you think that there is a possibility that you might have more children. Your life insurance company can instruct you on how to make this designation. For example, you may be able to name your children of your marriage to John Doe as a group beneficiary. By not naming the children individually, you will include children yet to be born at the time that you complete the forms. If you chose not to do this then you should be sure to amend your life insurance beneficiaries upon the birth of each child.
Speak to an Experienced Estate Planning Attorney Today
This article is intended to be helpful and informative. But even common legal matters can become complex and stressful. A qualified estate planning lawyer can address your particular legal needs, explain the law, and represent you in court. Take the first step now and contact a local estate planning attorney to discuss your specific legal situation.
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