If you are like many people, often most assets may consist of life insurance. If you and your beneficiary , such as a spouse passes on, often one then leaves the life insurance to your children. If the children are minors, they would be entitled to all of the insurance proceeds this when they reach the age of majority. This may not always be a good idea! Life insurance can involve a large amount of money and would certainly grow with interest by the time the children reach the age of majority.
An Insurance Trust Agreement would allow you to set up a trust to administer any insurance proceeds that minor children, or for that matter, anyone else might obatin. This way you can ensure that the monies are responsibly and appropriately administered for the maximum benefit of your loved ones. Again, if you do not have an insurance trust agreement, minor beneficiaries will be entitled to all of the proceeds upon reaching the age of majority.
An Insurance Trust Agreement would allow you to set up a trust to administer any insurance proceeds that minor children, or for that matter, anyone else might obatin. This way you can ensure that the monies are responsibly and appropriately administered for the maximum benefit of your loved ones. Again, if you do not have an insurance trust agreement, minor beneficiaries will be entitled to all of the proceeds upon reaching the age of majority.