A revocable trust is a means by which you can allocate your property, including your life insurance death benefit, to another person. You can change the provisions of this trust fund any time during your life, making the trust “revocable.”
You still manage and have total control of the fund, and you can even abolish it if you choose. Your minor children can’t be the direct beneficiaries of your life insurance death benefit. You must set up a trust fund in their names.
Trusts serve to ensure that certain funds go directly to a beneficiary (your minor children, for example). But you can also use a trust to save on taxes. For example, you can set up a bypass trust, which allows you to pass some of your estate on to your grandchildren, thereby “bypassing” any tax consequence to your children.
Because of the legal and tax implications, consult an attorney if you are considering setting up any sort of trust.
You still manage and have total control of the fund, and you can even abolish it if you choose. Your minor children can’t be the direct beneficiaries of your life insurance death benefit. You must set up a trust fund in their names.
Trusts serve to ensure that certain funds go directly to a beneficiary (your minor children, for example). But you can also use a trust to save on taxes. For example, you can set up a bypass trust, which allows you to pass some of your estate on to your grandchildren, thereby “bypassing” any tax consequence to your children.
Because of the legal and tax implications, consult an attorney if you are considering setting up any sort of trust.
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