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single folks: Who is your beneficiary?

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SphinxnihpS said:
No. For now, make the beneficiary "The Estate of rudeguy", then draft a will which delegates your estate. Later you can set up a trust to hold assets outside of your estate, and change the ownership and beneficiary to the trust. Pick a trustee. Heirs profit!

Despite laws preventing minors from getting ahold of death benefits before they become of age, the age is rather low (kids and money don't mix), and do you really want the state holding your money after your gone? Do you really want the state making all your final decisions for you in probate court. No and no!!!

Despite free templates and stuff available to help people draft these documents, hire an attorney who specializes in wills and trusts.
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Terrible advice. The estate will be taxed, which will probably suck up at least half of the value of the insurance policy.

OP, if you have a minor child, you'd better have a will, where you make preparations for said child in the event of your death. See a lawyer, STAT.
 
My fave ex gf, cus my mom is a dumb ass lazy white lyin sack of shit who been livin off wellfair her entire life who confides in smug looser family members that openly claim shes a stupid woman and pops no better.
 
sixone said:
Terrible advice. The estate will be taxed, which will probably suck up at least half of the value of the insurance policy.

OP, if you have a minor child, you'd better have a will, where you make preparations for said child in the event of your death. See a lawyer, STAT.
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Really?

#1 Unless rudeguy's estate is over $1,000,000 (2013 and beyond, this year the lifetime gift exemption is $5,000,000) the estate tax does not apply. No matter what his net worth, it would take 3 years from the date of gifting assets/money to an irrevocable trust to fully remove it from his estate.

#2 I clearly stated that he should change the beneficiary designation to his estate and draft a will which spells out his final wishes, including what is to be done with the life insurance death proceeds. -then draft a will which delegates your estate- This is more important than the trust even if he has a taxable estate, because it would settle all kinds of arguments that could arise (and they do), arguments that cost lots of money to settle.

#3 I also said he should draft a trust and move assets, including the LI policy, even if it's term with no cash surrender value, to it. -Later you can set up a trust to hold assets outside of your estate, and change the ownership and beneficiary to the trust- This isn't necessary though if his estate won't be taxed, but it can't hurt either. A revocable trust may work just as well in his case.

#4 I advised he seek legal counsel for ALL of this. -hire an attorney who specializes in wills and trusts- You can pay for an attorney at one of two times, now or later. Later always costs far more.
 
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My sister is the beneficiary to my life insurance policy. I told her to just basically pay for the funeral and the rest was her's to do whatever the hell she wanted.
 
Brother until I was married. Next choice would have be to leave it to the state or a charity.

Also, minors cannot receive an inheritance directly.
 
100% my dad. There's more than enough to pay off my debts and funeral cost...as for the rest, I'd prefer they (parent's and sisters) do something fun with it.
 
My sister though I've been rethinking that as I don't consider her to be the most responsible person in the world.

My parents are well off. They don't need the money.

I may change it to leave my sister enough to pay for the funeral arrangements, leave some to my good friend, and leave the rest to charity.
 
50% to dad, 50% to mom. Assuming I outlive them and I'm still single, I guess I'll name my brother as sole beneficiary.
 
Balt said:
50% to dad, 50% to mom. Assuming I outlive them and I'm still single, I guess I'll name my brother as sole beneficiary.
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Same. Though I'm an only child and I don't like the rest of my family. So if I outlive my parents and I'm still single, my estate will go to charity.
 
Your main revocable living trust should not own your life insurance policy. It will add to the value of your estate which gets you closer to taxation on your estate. Now you can hold your live insurance policy in an irrevocable life insurance trust (ilit). I work for an estate planning attorney though and we never put life insurance policies into your main trust. Depending on the amount of your policy you could most likely leave it out of trust and be fine.

I would also highly advise against drafting a will amd instead go with a full trust package that includes the trust a pour over will as well as your durable power of attorney for property management and advance health care directive.

With a will you are looking at having your loved ones go through probate court which is expensive and time consuming.

I'm not sure where you live op but if it is california I would suggest calling us. My attorney Dr. Kent W. Meyer is the best in the state in my opinion. He has taught estate planning at mcgeorge school of law for over 20 years and holds a phd in accounting and taxation.
 
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i have no insurance of any kind on my life. my parents are well off and money on my death wouldn't mean anything to them.

i have no will so assume if i die before my parents then they get everything by default? no siblings or any other family
 
tygeezy said:
Your main revocable living trust should not own your life insurance policy. It will add to the value of your estate which gets you closer to taxation on your estate. Now you can hold your live insurance policy in an irrevocable life insurance trust (ilit). I work for an estate planning attorney though and we never put life insurance policies into your main trust. Depending on the amount of your policy you could most likely leave it out of trust and be fine.

I would also highly advise against drafting a will amd instead go with a full trust package that includes the trust a pour over will as well as your durable power of attorney for property management and advance health care directive.

With a will you are looking at having your loved ones go through probate court which is expensive and time consuming.

I'm not sure where you live op but if it is california I would suggest calling us. --blah------blah------blah-------unsolicited advertising -------blah--------blah-------blah------blah--.
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Not necessarily, and maybe unnecessary.

A testamentary/revocable/living trust doesn't make your estate larger, it is simply part of your estate. If you have a net worth of $100 cash, and put the $100 in your living trust you now have zero and your trust has $100, and your estate is still $100. An irrevocable trust is mainly unnecessary unless someone has a taxable estate. Assets gifted to an irrevocable trust are removed from your estate, but are under the direct control of a trustee who is not bound by the wishes of the grantor further than spelled out in the trust. No trust can replace a will, because no natural person can zero out their estate; there will still be assets to distribute and things to do. You can not avoid probate court, you can just have everything spelled out in advance.

Also, be careful now, you can get yourself and your law firm in trouble by directly advocating for it here while giving advice in an unregulated fashion. I know your heart is in the right place, but watch it.
 
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rudeguy said:
I wouldn't want to put him in that position until he is ready for it.
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Was going top suggest creating a trust . . . but that has already been suggested. SOOOoooo (whistles) . . . . do what the other folks said.
 
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