Hopler, Wilms, & Hanna’s Post

📜 Did you know that if you pass away with debt, creditors can't touch the life insurance payout meant for your spouse or children?🛡️ But there's more to consider, especially when naming beneficiaries. 🤔 👧 Naming Minor Children as Beneficiaries 👦 If you name a child under 18 as beneficiary, the court gets involved. 🏛️ A court-appointed manager handles the money and must use your child's inheritance to buy an expensive insurance policy called a "surety bond"—to protect against theft. 🛡️ This managing process is costly with ongoing court oversight. 🕵️♂️ 🎂 Turning 18: Ready or Not 🎉 Once your child turns 18, they'll receive the money, whether they're financially responsible or not. 💸 Plus, the details about their inheritance become public records. 📰 The Trust Advantage 📈 To avoid these complications, consider naming a trust as your life insurance policy's beneficiary. A trust offers: 🔒 More Privacy: Keeps your financial matters confidential. 🚀 Efficiency: No need for court audits. 🎮 Control: You dictate how the money gets spent and when your child receives it. By planning ahead, you can ensure that your life insurance benefits truly benefit your loved ones. 💖 https://lnkd.in/g5Dnfimc #estateplanning #lifeinsurance #trusts #nc #attorney

📜 Did you know that if you pass away with debt, creditors can't touch the life insurance payout meant for your spouse or children?🛡️ But there's more to consider, especially when naming beneficiaries. 🤔 👧 Naming Minor Children as Beneficiaries 👦 If you name a child under 18 as beneficiary, the court gets involved. 🏛️ A court-appointed manager handles the money and must use your child's inheritance to buy an expensive insurance policy called a "surety bond"—to protect against theft. 🛡️ This managing process is costly with ongoing court oversight. 🕵️♂️ 🎂 Turning 18: Ready or Not 🎉 Once your child turns 18, they'll receive the money, whether they're financially responsible or not. 💸 Plus, the details about their inheritance become public records. 📰 The Trust Advantage 📈 To avoid these complications, consider naming a trust as your life insurance policy's beneficiary. A trust offers: 🔒 More Privacy: Keeps your financial matters confidential. 🚀 Efficiency: No need for court audits. 🎮 Control: You dictate how the money gets spent and when your child receives it. By planning ahead, you can ensure that your life insurance benefits truly benefit your loved ones. 💖 https://lnkd.in/g5Dnfimc #estateplanning #lifeinsurance #trusts #nc #attorney

Did you know that creditors can't touch the life insurance payout meant for your spouse or children? But there's more to consider, especially when naming beneficiaries. 👶 Naming Minor Children as Beneficiaries If you name a child under 18 as a beneficiary, the court gets involved. A court-appointed guardian must handle the money, and you'll need to buy a surety bond—an expensive insurance policy—to protect against theft. This process is not only costly but also requires ongoing court oversight. 💵 Turning 18: Ready or Not Once your child turns 18, they'll receive the money, whether they're financially responsible or not. Plus, the details about their inheritance become public records. 🔒 The Trust Advantage: To avoid these complications, consider naming a trust as your beneficiary. A trust offers: - More Privacy: Keeps your financial matters confidential. - Efficiency: No need for court audits - Control: You dictate how the money gets spent and when your child receives it. - Creditor Protection: Your trust can be structured to protect against creditors. By planning ahead, you can ensure that your life insurance benefits truly benefit and secure your loved ones' future.🛡️ Watch our video to learn more at: https://lnkd.in/eKmdY-fz #lifeinsurance #minorinheritance #nc #attorney

💡 Money Minutes: The Role of a Beneficiary in Insurance Policies (Episode 61) A beneficiary is a person or entity designated to receive the benefits or payouts from an insurance policy when the policyholder passes away. Naming a beneficiary is a crucial part of the insurance process, ensuring that the right people or organizations receive the financial support intended for them. How It Works: Primary and Contingent Beneficiaries: You can name both primary and contingent beneficiaries. The primary beneficiary is the first in line to receive the benefits, while the contingent beneficiary receives the payout if the primary beneficiary is unable or unwilling to do so. Flexibility: You can designate more than one beneficiary and specify the percentage of the benefit each should receive, allowing you to distribute the payout according to your wishes. Why It Matters: Avoiding Legal Complications: Properly naming beneficiaries helps avoid legal disputes and ensures a smooth transfer of funds to your loved ones without delays or probate. Regular Updates: It’s essential to review and update your beneficiaries over time, especially after significant life events like marriage, divorce, or the birth of a child, to ensure your policy reflects your current wishes. 🌟 Key Takeaway: Clearly designating and regularly updating your beneficiaries can prevent misunderstandings and ensure that your insurance benefits go to the intended recipients without complications. #MoneyMinutes #InsuranceBeneficiary #LifeInsurance #FinancialPlanning #CFCP

Episode 61 of Money Minutes: The Role of a Beneficiary in Insurance Policies Naming a beneficiary in your insurance policy ensures that your loved ones or chosen entities receive the financial support you intend for them. Regularly reviewing and updating your beneficiaries helps avoid legal complications and makes sure your wishes are honored. Learn more about why this is crucial in today’s episode! School of Commerce Finance and Accountancy CHRIST University, Pune - Lavasa #MoneyMinutes #InsuranceBeneficiary #LifeInsurance #FinancialPlanning #CFCP

When it comes to protecting your loved ones, choosing an irrevocable policy can provide peace of mind. In a recent meeting with clients discussing a life insurance policy, it was decided that the mother and father should be named as irrevocable beneficiaries. This ensures that if anything were to happen to their daughter, before her college loan was paid off, the parents would receive the necessary funds to cover the debt. What's an irrevocable beneficiary? It is a beneficiary that makes decisions based on what changes can and cannot happen to that policy. The parents owned the policy, they paid for the policy, it was on the life of their daughter in case something happened. But eventually they probably would give this policy to their daughter down the road, but they didn't want her to be able to change anything with it. So, the one way that can happen is by being an irrevocable beneficiary, because if you try to make changes to the policy, the irrevocable beneficiary has to sign off on those changes. That way you know that they're not just taking money out of the policy, or they're not just canceling it before it has fulfilled the obligations originally taken out for. Prioritizing your family's financial security is always a smart choice. #irrevocablebeneficiary #insurance policy #lifeinsurance

In North Carolina, life insurance offers a shield 🛡️ against creditors. This ensures beneficiaries get their due, even if debts overwhelm the estate. But, there's a catch when minors are involved... 👶 Assigning a child under 18 as a beneficiary leads to court involvement ⚖️ and the purchase of expensive surety bonds. These bonds safeguard the funds but eat into the child's insurance benefits. 💸 Additionally, managing these funds requires costly court oversight and also raises privacy issues for your child.🚨 Once in the court system, the funds become public record. 📰 💡Opting for a trust offers a solution. bringing control, privacy, and efficiency in managing funds for minors. The courts stay out of your child's life and there are NO surety bonds. Trusts also allow for extended management beyond the child's 18th birthday 🎂. This approach avoids a court handing a lump sum directly to an 18-year-old. Trusts ensure responsible management of the funds, offering peace of mind. Watch our full video and find out more about how best to leave insurance policy funds to a minor. 📝 https://lnkd.in/gJheDFum #insurancepolicy #minorbeneficiary #nc #trusts #attorney

In North Carolina, life insurance offers a shield 🛡️ against creditors. This ensures beneficiaries get their due, even if debts overwhelm the estate. But, there's a catch when minors are involved... 👶 Assigning a child under 18 as a beneficiary leads to court involvement ⚖️ and the purchase of expensive surety bonds. These bonds safeguard the funds but eat into the child's insurance benefits. 💸 Additionally, managing these funds requires costly court oversight and also raises privacy issues for your child.🚨 Once in the court system, the funds become public record. 📰 💡Opting for a trust offers a solution. bringing control, privacy, and efficiency in managing funds for minors. The courts stay out of your child's life and there are NO surety bonds. Trusts also allow for extended management beyond the child's 18th birthday 🎂. This approach avoids a court handing a lump sum directly to an 18-year-old. Trusts ensure responsible management of the funds, offering peace of mind. Watch our full video and find out more about how best to leave insurance policy funds to a minor. 📝 https://lnkd.in/gJheDFum #insurancepolicy #minorbeneficiary #nc #trusts #attorney

🚨 Public Service Announcement: Mortgage and Income Protection DOES NOT Cover Redundancy! 🚨 Too many people are under the misconception that their Mortgage and Income Protection policies will cover them in the event of redundancy. Just this morning, a client shared that all their friends have redundancy cover included in their policies, so why don't the ones I recommend? In my years as an insurance adviser dealing with thousands of clients, I’ve only encountered 1 or 2 people who have had redundancy cover in place. So I'll leave it up to you what the likelihood is of all your friends having this coverage in place versus them simply thinking they do. It's crucial to understand that redundancy protection is NOT a standard feature in insurance policies. If you’re relying on your insurance to cover you in case of job loss, you might be in for a harsh surprise when you need it most. 💡 What’s the takeaway? Get an insurance adviser who educates you about your coverage. Don’t wait until it’s too late to find out you’re not as protected as you thought. Make informed decisions and avoid the unfortunate situation of facing financial hardship without the support you expected. Be proactive. Be informed. Don’t let gaps in understanding jeopardise your financial security.

Pitfalls of Dying Intestate with Minor Children Minors cannot be paid funds or be transferred property until they reach the age of majority, including gifts from an estate, regardless of whether there is a will, or proceeds payable from a life insurance policy or registered plan. Typically, a will provides that a minor’s share in the estate is to be held in trust by named trustees along with other terms as to when or for what purposes payments from the trust may be made for the minor’s benefit. The trust may also continue after the minor beneficiary attains the age of majority to protect against a young adult coming into significant amounts of money before they are financially mature enough to manage it. However, an intestacy presents unique complications for a minor beneficiary. If a minor inherits on an intestacy the above trust structure does not exist, and because the inheritance cannot be paid or transferred directly to the minor, few options are available. READ MORE: https://lnkd.in/g4xXfq3H #estateplan #estatelaw #estateplanning #estateplanninglawyer #estateplanningattorney #estatelaw #estates #estatestrategy #estateadministration #estatemanagement