As parents, you would protect your children. For example, you may purchase insurance so that in case something happens to you while they are young, there will at least be cash to provide for their needs. If you have taken insurance, chances are, you may think that you have done enough in providing security to your loved ones by nominating them as your beneficiaries in your insurance policies. Think again...
Are your loved ones completely protected when you nominate them as beneficiaries in your insurance policies? Is that actually enough?
You may want to consider:
- If your spouse is the sole beneficiary to your insurance policy, what happens to the insurance proceeds upon your spouse’s passing? Or,
- If your young children are the beneficiaries, who should claim the insurance proceeds for them in the event both you and your spouse are unable to?
- Are your beneficiaries mature enough to handle large sums of money?
- Is there someone competent enough to assist the beneficiaries?
You have probably accomplished a great deal with your life. Over the years you have worked hard, planned and saved.
You have made sacrifices to be where you are. You will want to pass along your wealth to your loved ones with minimal hassle and delay by the legal process. What arrangements have you made?
If you have yet to draw up a Will, then you must have one and update it periodically. If you have drawn up a Will, that is the first step. It may however not be enough. To complete your estate planning process, you may need to create a TRUST.
A Trust is one of the most effective financial planning tools to safeguard your assets for your loved ones. The Trust will contain specific instructions to manage, protect, preserve and distribute your assets. It will also outline the duties and responsibilities of the Trustee.
Trust is a legal arrangement where the creator of the trust called the Settlor entrusts and transfers legal ownership of the assets to another person called the "trustee" under a Trust teed. The Trustee then acts for the benefit of the named beneficiaries in the Trust deed for a specified period of time.
