The following is my answer to a Quora question: “How
can you ensure that your underage children receive their share of your life
insurance?”
Insurance policies can be nominated. You nominate the share of the claim to your
preferred beneficiaries.
In the event that you pass away while the children are
still below the age of majority, the estate will withhold the funds until they
reach that age, and then pay out. That
money will be kept in an account. This
is why it is important to have good executors.
Alternatively, you can nominate it to a trust, and
have them as beneficiaries. This is only
worth it if the sums are substantial, and is normally done with all assets you
want to leave to them. In this case, it
is important to have good trustees.
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