Ask Terry Questions Beneficiary for life insurance

Beneficiary for life insurance

By Terry Savage on June 10, 2023 | Financial Planning / Retirement

What is your recommendation? Should the primary beneficiary be the spouse then the children per stirpes OR
Primary be the Trust?
We are in the process of updating our Wills (1985)and Trust (2004)

Thank you

Terry Says

That’s a question that depends on the terms of your revocable living trust, and the ages of the beneficiaries you want to name. I doubt that you will continue to have a will — except for a small pour-over will that instructs your trustees to deal with all assets outside the trust (your personal checking account, car, etc).

If you have minor children, your lawyer will likely suggest you make the trust the beneficiary of life insurance, and include directions about how you want the money used — college, private school, lessons etc.
If your beneficiaries are adults, then name a primary beneficiary and a contingent beneficiary if the former is not alive.

This is why you should choose a sophisticated estate planning attorney.



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