Posted: Mon Jun 09, 2008 4:30 am Post subject: The reason for establishing Trust
The real reason for establishing a Trust is not really "not trusting people with the money", although that could be one. The reason is that if the child(ren) is a beneficiary and under age, the court will decide what to do with the money and generally would appoint a court appointed guardian/trustee to take care of the money in conjunction with the legal guardian. The court would further instruct the way the money should be invested, namely an FDIC insured account, which means very low returns, with the money to be released upon "coming of age". Money could be possibly withdrawn for education purposes or such, but the process would be complicated and would have to go through the court EACH TIME. A Trust would solve this issue AND if designed correctly with the right instructions, allow for more flexibility in how the money is to be used and yet more in line with the parent(s) wishes.
Posted: Tue Jun 10, 2008 10:05 am Post subject: insurance
I have seen SOO many families just 'torn apart' from who gets xxxx amount of money. It's sad to see. 'You' should be as specific as you can...who gets the money and who you want to 'control' it. If, for some reason, the 'issue' ends up in the court system, it can take a long time to resolve.
Several community members express their concern if a policyholder can find the right person to be the trustee who will take care of the interest of the minor beneficiaries named in the policy.
If you don't think you can find anyone trustworthy to do the job, you may consider a corporate trustee provided you leave behind huge sum of money.
Well, like it or not, after we die, someone will step into our shoes and manage our financial affairs either we have life insurance or not.
If a person dies without will, the court will appoint an administrator to manage the deceased's estate. If a person dies with will, the court will appoint an executor and the executor will have to manage the estate according to the wishes of the deceased as described in the will.
Posted: Thu Aug 14, 2008 10:17 am Post subject: insurance
It would be very sad, I think, if your parents pass away WITHOUT some sort of will, POA, etc. All of their belongings will go to the courts. My parents are in their 70's..and they have a will, etc., set up between my sisters and I. Of course......I would rather have my parents alive than their 'items'.
I would rather have mine too. What do you mean all their items go to the courts? I am thinking that you mean the court will have the right to decide who gets what? My dad has a will but really I don't care...I would rather have him any day.
