Life Insurance policy beneficiaries with a revocable trust
My husband and I are setting up a revocable trust. There are mixed answers on naming or not naming the revocable trust as the beneficiary of our individual life insurance policies. My husband is 85 and I’m 71. We are both beneficiaries on each others policies. We have 3 children as contingent beneficiaries. Your video says “no” we shouldn’t name the trust but our attorney said otherwise. Which would be more beneficial and reasons?
Terry Says
Your attorney knows your situation better, so I’d follow his/her advice.
And I don’t think I said that in the video. I said that depending on the level of your assets, and your exposure to both federal (currently $18 million) but also state inheritance taxes (estates above $4 million in Illinois, for example), it might be better to have your policy OWNED by an irrevocable life insurance trust — and thus the proceeds are not included in your estate!
