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Life insurance will ??

Idahobound

I have a buddy that has been told he has less than a year to live. He has 2 young kids and an ex-wife. He is trying to get it set up so his kids are taken care of but his user/loser ex isn’t. What steps does he need to do.

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9 comments

Date Votes
  • shootuadeal

    Does he already have life insurance? If not its doubtful that will come into play.

    Making a trust with small annual payments to the kids until they reach a certain age then a lump sum would be the way to keep his assets to his kids if he has a sizable estate. If he doesn't have a large amount of assets it probably isn't a big deal either way.

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  • KenK/84Bravo


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  • nmyers
    There's only 1 step:  he needs to talk to a lawyer.

    I would expect the lawyer to establish a trust.  Your buddy should be prepared to give him the contact information for at least 2 friends he trusts to administer the trust.  (Yes, most lawyers will be willing to be a trustee, but he will bill the trust for his time.)
    Neal
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  • Idahobound

    His life insurance policy is worth over 1.5 million. Assets are pretty much gone in the divorce. He has a few guns but not much else.

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  • select-fire
    nmyers said:
    There's only 1 step:  he needs to talk to a lawyer.

    I would expect the lawyer to establish a trust.  Your buddy should be prepared to give him the contact information for at least 2 friends he trusts to administer the trust.  (Yes, most lawyers will be willing to be a trustee, but he will bill the trust for his time.)
    Neal

    This ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
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  • shootuadeal

    The life insurance policy is his policy, he owns it. He sets the beneficiaries of it. He can setup a trust to be the beneficiary. Yes, a lawyer and a trusted friend or friends to be the trustees are needed as well.

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  • Idahobound

    There is more info than I said at first. The divorce is happening because of this diagnosis. She doesn’t know yet. He stayed in the marriage to protect his kids now he won’t be able to and wants to set them up the best he can when he is gone.

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  • mac10
    make kids the only benificiary
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  • spasmcreeksrun
    lawyer lawyer lawyer...this could get nasty....make it solid legal or greed will swoop in like a vulture
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