Settling an estate can be an emotional, stressful time for families after a loved one passes away. In addition to filing paperwork, working with attorneys and digging up any number of accounts, beneficiaries may be disappointed to discover that their inheritances may not turn out to be exactly equal.
This is especially the case when real estate is involved. For instance, if your daughter wants the house after you pass, how can you ensure that your son receives an inheritance of equal value?
Enter life insurance. A life insurance policy can help smooth out distribution among heirs by balancing assets with cash. So, if your daughter wants the house, then your son can receive the equivalent in a life insurance policy distribution.
This is a great option to offset assets that would otherwise be difficult to divide between heirs. Besides, no one wants to create potential conflict amongst family members over perceived unfair distribution of wealth.
Be careful with how you set your life insurance beneficiary designations. Those funds can go directly to the named people, even if you have a trust. Best practice is to name your trust as the beneficiary of your life insurance policy and let the trust provisions address all the contingencies and equalization plan that you mapped out there.
Contact MeyerPink Law at (209) 694-3085 or email [email protected] to learn more about how to incorporate life insurance into your estate plan.
