How can I help my wife and family manage my life insurance benefits after my death?

ldeweyjr: How can I help my wife and family manage my life insurance benefits after my death?
I have about $ 1.3 million in life insurance benefits. My wife is not very good with managing money and I’m worried that if something should happen to me, she will run through it in a few years. She’s a great wife and mom and she always means well but she has no concept of how to manage money.
Thanks to InsuranceAgent, who provided the “central theme” but my problem isn’t with lack of trust, rather lack of knowledge. Similarly, I “trust” that my wife will take care of our vehicles if I should pass, but I can’t see her overhauling the engine herself. Thanks for the sarcasm though.

Answers and Views:

Answer by sudha k
Try out any company or contact any broker

Answer by LifeInsuranceAgent
Put it in a trust with a trustee you trust to ensure that your entrusted professional will oversee the proceeds in the trust so that your wife is not entrusted with all the money upfront, but rather receives money from the trust as dictated by the trust agreement, and that the trustee carries out your wishes.

notice the central theme?

I think we are thinking of two different definitions of trust.

I’m not talking about trust as in ethics, morals, etc..I’m talking about trust funds.

If you setup a trust fund to be the owner and beneficiary of the policy, you can dictate the terms of that trust, which would in turn dictate things such as the use of the trust proceeds.

For example, the $ 1.3 million goes into the trust upon your death. You had already setup the terms of that trust determining how much could be spent each year, for what purpose such as education, housing, fun money, etc..

That way you can ensure that the money lasts.

Answer by Roy S
hi, Check this out…www.roysummers.yournewfortune.com..Listen to Audio..

Answer by saberhilt
Despite some of the snark, “InsuranceAgent” makes a good point. Leaving your life insurance to a Trust will ensure that the money is there for the long haul.

As for her “No concept of money,” can you get her to take a book keeping class? Or perhaps give her some money to put in the Stock Market. If she loses it all, that might shcok her money sense a bit.

As another option, I suggest playing (there are groups that meet for free, or you can buy the game board yourself) Cashflow 101. This game is kind of like Monopoly, but much more advanced. It deals a lot with How to Handle your Money. It was designed as a tool to teach investing, but it is very useful to get people to recognize their money for what it is.

Answer by Jason S
I would recommend using a Trust as well. We all trust our spouses and family, but in a situation like this, a small personality quirk could lead to her being without money which would be a horrible thing. A trust would not only pay for her bills, but would give her a monthly income to do whatever she pleases with. It may take a bit of getting used to on her part, but it would be much better for her in the long run.

Good luck!

Answer by skylarksue
if you set up a trust and or use annuities to transfer your assets. you can then have them allot a certain amount for her use at set intervals, or lumps sums only at certain times. a good insurance agent can help you re-allocate your assets into these controlled distribution accounts.

Answer by aaron p
A trust with at least one professional trustee is a good bet. You can also talk to your current advisory team and make sure that they understand they should take care of her and be patient with her questions if you are no longer there.

Answer by Star
Perhaps you should set up a trust which sets forth the amount of money you want your wife to be provided monthly (obviously enough to live on after you pass; you may want an economist to estimate that amount). Name the trust as the beneficiary of the insurance benefits. Possibly a spendthrift trust.

I would consult an attorney who specializes in trusts.

You may also want to get some type of mortgage insurance that says when you die, the mortgage on your house will be paid off in full (so that your wife won’t have to worry about that).