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Other Added - Why Most People's Beneficiaries Will Not Receive Benefits
You arrive at work, ready to take on the task at hand. Your job entails helping other people. As you make your rounds, you ensure that each person has what he or she needs and is as comfortable as possible. You cater more to those that require your attention with special TLC. You must be patient and possess a certain level of understanding and compassion. Although tired, you leave work with a sense of accomplishment. You've completed the day in your life as a registered nurse. And that's just what Tamara Washington does.Nursing School After obtaining her bachelor of science in nursing from the Chamberlain School of Nursing (St. Louis, MO), Washington sought her first job. School had been a demanding front, but she was
What if you are the only person to die in an accident. Your spouse still may not get the benefit even if they were the primary beneficiary. Here is an example why. Let’s say your primary beneficiary received a death benefit of 500,000 dollars. For some reason they latter got remarried. The new spouse after years of begging talks them into buying that dream house on the mountain. Everything is fine at first but for some reason they end up getting a divorce. During the settlements of the divorce the house is given to your surviving beneficiary’s ex-spouse. In this example
PPC advertising is rapidly becoming one of the most popular forms of Internet advertising today. Productive PPC advertising depends mostly on how the ad is structured, but also which services you use. Here are 6 steps to productive PPC advertising.Step 1: Choose the Right Provider Make sure you choose the top PPC ad programs available. Google, Yahoo, and MSN are among the top. If they’re too expensive, there are some good secondary advertisers out there, like Kanoodle and FindWhat, but do your research first.Step 2: Write Your Ad Target your customer carefully by using keyword phrases. You will have to bid for these phrases, so choose carefully to make sure you don’t get into an extensive bid war over it. Then, w
The beneficiary provision is supposed to allow for the naming of a primary and contingent beneficiary. The primary beneficiary is the person designated to receive the death benefits if the insured dies. The contingent is the person designated to receive the death benefits if both the insured and the primary die at the same time. Beneficiaries can be a person, a business, or a trust in most cases. An irrevocable beneficiary is a beneficiary who can be changed by the policy holder only with the permission of that beneficiary.
Life Insurance Beneficiary Problems
Many individuals designate their spouse as the primary beneficiary and their children as contingent beneficiaries. There are two problems here. First, the spouse is the primary beneficiary and second the children are the contingent beneficiaries. The thought is, if the husband or wife were to die the money will be passed onto the spouse. If the husband and wife die simultaneously, the benefits will be passed on to the children.
The first problem here is what if the you and your spouse were in some kind of accident where you died first and shortly after your spouse died, may be weeks, days, or hours. Since your spouse did survive you, your contingent beneficiaries are not eligible to receive your benefit. This means the insurance company will pay the proceeds of your policy to their probate estate. Let’s say in this accident both the insurance and primary beneficiary both die at the same time. You would think that the benefit would go to the contingent beneficiaries. This is where the second problem starts.
The second problem with this scenario is that children were the contingent beneficiaries. Young children cannot be paid life insurance proceeds, with the age varying state by state. This means that if there was no will in place the state would choose who the guardians will be for your surviving children. They may be or not be who you would have chosen had you done your will. As such, death proceeds will be paid to the new guardians of your kids, which means your kids may or may not get the benefit.
Here is your solution. Set up a Uniform Gift to Minors Account (UGMA), a Uniform Transfer to Minors Account (UTMA), or a Trust in the children’s name. Both the UGMA and the UTMA are free. With either a UGMA or a UTMA the insurance company will pay the death proceeds into the account. When your children reach age of majority they will then have access to the money. However, most parents would not want their 18 year old child to have access to 500 thousand or 1 million dollars. So, the next best thing is to set up a trust as the primary and contingent beneficiary. This way you as the insured can chose at what age and what amounts money will be distributed to both the primary and contingent beneficiaries. This does cost a little but is the best alternative.
What if you are the only person to die in an accident. Your spouse still may not get the benefit even if they were the primary beneficiary. Here is an example why. Let’s say your primary beneficiary received a death benefit of 500,000 dollars. For some reason they latter got remarried. The new spouse after years of begging talks them into buying that dream house on the mountain. Everything is fine at first but for some reason they end up getting a divorce. During the settlements of the divorce the house is given to your surviving beneficiary’s ex-spouse. In this example b
Scheduling my team has always been one of my least favorite tasks as a retail manager. It’s tedious, it takes hours and even when I think I have it right, I probably don’t. What makes scheduling a challenge is that you are balancing the demands of individuals on your team with the demands of your business. This can be a very time consuming and frustrating.Lets say you complete a schedule which took you 2 hours to create. You have carefully made sure everyone has at least two days off, and all approved requests for days and vacations have been honored. You post the schedule and then you are informed that someone on your sales team needs different days off. This may seem simple, however you have to virtually build another schedule,
Life Insurance Beneficiary Problems
Many individuals designate their spouse as the primary beneficiary and their children as contingent beneficiaries. There are two problems here. First, the spouse is the primary beneficiary and second the children are the contingent beneficiaries. The thought is, if the husband or wife were to die the money will be passed onto the spouse. If the husband and wife die simultaneously, the benefits will be passed on to the children.
The first problem here is what if the you and your spouse were in some kind of accident where you died first and shortly after your spouse died, may be weeks, days, or hours. Since your spouse did survive you, your contingent beneficiaries are not eligible to receive your benefit. This means the insurance company will pay the proceeds of your policy to their probate estate. Let’s say in this accident both the insurance and primary beneficiary both die at the same time. You would think that the benefit would go to the contingent beneficiaries. This is where the second problem starts.
The second problem with this scenario is that children were the contingent beneficiaries. Young children cannot be paid life insurance proceeds, with the age varying state by state. This means that if there was no will in place the state would choose who the guardians will be for your surviving children. They may be or not be who you would have chosen had you done your will. As such, death proceeds will be paid to the new guardians of your kids, which means your kids may or may not get the benefit.
Here is your solution. Set up a Uniform Gift to Minors Account (UGMA), a Uniform Transfer to Minors Account (UTMA), or a Trust in the children’s name. Both the UGMA and the UTMA are free. With either a UGMA or a UTMA the insurance company will pay the death proceeds into the account. When your children reach age of majority they will then have access to the money. However, most parents would not want their 18 year old child to have access to 500 thousand or 1 million dollars. So, the next best thing is to set up a trust as the primary and contingent beneficiary. This way you as the insured can chose at what age and what amounts money will be distributed to both the primary and contingent beneficiaries. This does cost a little but is the best alternative.
What if you are the only person to die in an accident. Your spouse still may not get the benefit even if they were the primary beneficiary. Here is an example why. Let’s say your primary beneficiary received a death benefit of 500,000 dollars. For some reason they latter got remarried. The new spouse after years of begging talks them into buying that dream house on the mountain. Everything is fine at first but for some reason they end up getting a divorce. During the settlements of the divorce the house is given to your surviving beneficiary’s ex-spouse. In this example
Have you ever wanted to work for yourself? Imagine - you could decide when and where you work, how much you want to earn, and best of all, no one could ever fire you.What if I told you that you could start your own business in less than one minute?You can.You can start your own business in less than one minute by creating a blog. A blog is essentially an instant-publishing solution. Think of it as creating your own magazine. If that sounds intimidating, it's not. You're a mine of information and knowledge, but you're using all that know-how for someone else. When you create a blog, you're using that information for yourself.You can create your blog today, and start adding entries to it. You can even monetize
The second problem with this scenario is that children were the contingent beneficiaries. Young children cannot be paid life insurance proceeds, with the age varying state by state. This means that if there was no will in place the state would choose who the guardians will be for your surviving children. They may be or not be who you would have chosen had you done your will. As such, death proceeds will be paid to the new guardians of your kids, which means your kids may or may not get the benefit.
Here is your solution. Set up a Uniform Gift to Minors Account (UGMA), a Uniform Transfer to Minors Account (UTMA), or a Trust in the children’s name. Both the UGMA and the UTMA are free. With either a UGMA or a UTMA the insurance company will pay the death proceeds into the account. When your children reach age of majority they will then have access to the money. However, most parents would not want their 18 year old child to have access to 500 thousand or 1 million dollars. So, the next best thing is to set up a trust as the primary and contingent beneficiary. This way you as the insured can chose at what age and what amounts money will be distributed to both the primary and contingent beneficiaries. This does cost a little but is the best alternative.
What if you are the only person to die in an accident. Your spouse still may not get the benefit even if they were the primary beneficiary. Here is an example why. Let’s say your primary beneficiary received a death benefit of 500,000 dollars. For some reason they latter got remarried. The new spouse after years of begging talks them into buying that dream house on the mountain. Everything is fine at first but for some reason they end up getting a divorce. During the settlements of the divorce the house is given to your surviving beneficiary’s ex-spouse. In this example
Merchants processing high volumes of credit card transactions minimize risk and increase business growth by establishing multiple merchant accounts. It makes good business sense for high volume ecommerce merchants in any industry, or merchants in a “high risk” category to protect their business by diversifying merchant accounts.Using a gateway through which multiple merchant accounts can be controlled is vital to effective merchant account management. A powerful gateway permits management of an unlimited number of merchant accounts through a single central control panel. Load balancing and intelligent transaction routing is managed through velocity settings and flexible rule sets that are configurable by the merchant.Th
Here is your solution. Set up a Uniform Gift to Minors Account (UGMA), a Uniform Transfer to Minors Account (UTMA), or a Trust in the children’s name. Both the UGMA and the UTMA are free. With either a UGMA or a UTMA the insurance company will pay the death proceeds into the account. When your children reach age of majority they will then have access to the money. However, most parents would not want their 18 year old child to have access to 500 thousand or 1 million dollars. So, the next best thing is to set up a trust as the primary and contingent beneficiary. This way you as the insured can chose at what age and what amounts money will be distributed to both the primary and contingent beneficiaries. This does cost a little but is the best alternative.
What if you are the only person to die in an accident. Your spouse still may not get the benefit even if they were the primary beneficiary. Here is an example why. Let’s say your primary beneficiary received a death benefit of 500,000 dollars. For some reason they latter got remarried. The new spouse after years of begging talks them into buying that dream house on the mountain. Everything is fine at first but for some reason they end up getting a divorce. During the settlements of the divorce the house is given to your surviving beneficiary’s ex-spouse. In this example
Discipline Is Important.I recently read an article about why discipline is important to a marketer. The author said that undisciplined people only live for today. He added that disciplined people use a little of their time for pleasure, and then invest the rest of their time in the future. Disciplined people get out of their armchair and do something. This takes effort and willpower. On the other hand, undisciplined people squander their time and their money. It takes discipline to be a successful at business and in life.While I fundamentally agree with this premise, there is something about the concept of discipline that sounded tough...agonizing, even. I had to take some time to think this through. As a person who
What if you are the only person to die in an accident. Your spouse still may not get the benefit even if they were the primary beneficiary. Here is an example why. Let’s say your primary beneficiary received a death benefit of 500,000 dollars. For some reason they latter got remarried. The new spouse after years of begging talks them into buying that dream house on the mountain. Everything is fine at first but for some reason they end up getting a divorce. During the settlements of the divorce the house is given to your surviving beneficiary’s ex-spouse. In this example because you put your spouse as the beneficiary, you end up paying your benefit to some stranger you don’t know who
marries your spouse after your death. How do you feel about that? Solution set up a trust as the primary beneficiary. This way you control the money from the grave.
We did not even talk about other issues such as step parents or kids, special needs beneficiaries, whether to designate beneficiaries as per stirpes or per capita. Every insurance policy should specify one or it is automatically deemed per capita. If you have any questions determining which one you should have call my office. I don’t have enough room to explain them here today, I still need to touch on IRA beneficiaries.
IRA beneficiary Problems.
You may be thinking that if a trust is the best selection for your life insurance that it must be good for your IRA’s as well. Where there is reason you may want to put your trust as the beneficiary this will in most cases cause more problems. Generally speaking you should never name a trust as the beneficiary of your IRA, even if your attorney tells you to do it. Trusts as IRA beneficiaries create unique problems and tax complications even when executed perfectly. Basically speaking, if the trust fails to qualify as a designated beneficiary, then there is no designated beneficiary, and the trust beneficiary will not be able to stretch post death required distributions even over the surviving spouse’s life expectancy. In that case, the IRA will be paid our either under the five-year rule or over the remaining life expectancy of the deceased IRA owner.
I am out of room for today’s topic so let me just say there are many more issues to discuss with both life insurance, IRA, or 401(k) beneficiaries. Hopefully this got you thinking and reviewing what you have. If you have any questions or feel you need a review of your current beneficiary selections or need some ideas what to change please feel free to call my office.
If you or someone you know needs some help managing retirement assets, setting up a retirment savings plan, or have life insurance needs, just give me a call at 801-545-0696. You can also visit our website at www.stonecreekwealthadvisors.com
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