Timeline for Universal Life Insurance or Term Life Insurance?
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| Jun 13, 2020 at 13:33 | comment | added | Julie in Austin | You sound like someone who's selling trusts, or trust related services, so I'm starting to suspect conflicts of interests. One reason not to pay immediate -- instantly required -- expenses out of a trust is because executors may not be trustees. If you've ever had to deal with a death personally, beneficiaries are often family members dealing with the death. My executors get nothiing and they need access to money instantly. | |
| Jun 12, 2020 at 13:47 | comment | added | JBentley | @Harper-ReinstateMonica Another consideration is that depending on circumstances, nature of the trust, and jurisdiction, a trust can have very different tax rules to a life insurance policy. For example a discretionary trust in the UK can attract some pretty high taxes at creation, periodically (every 10 years), and on any transfers out of the trust. That may not compare favourably to inheritance tax... again, depending on circumstances. | |
| Jun 12, 2020 at 13:41 | comment | added | JBentley | @Harper-ReinstateMonica Actually with a trust, the money is not "in the trust", it's with the trustees. Whereas you want it in the hands of the beneficiaries. Any delay depends on how quickly the trustees act. Life insurance can be superior (and by the way, many life insurance policies are themselves set up as trusts anyway) because beneficiaries may be willing to act on the basis of the existence of the policy alone, on the assumption that the money will follow later. I know a funeral director who does exactly that, but would not for a bespoke trust because of the reduced legal certainty. | |
| Jun 11, 2020 at 16:25 | comment | added | Harper - Reinstate Monica | Well, a trust is instantaneous. It's already in the trust. What the trust does is avoid the delay of will-readings (and probate, obviously) for all the assets. | |
| Jun 11, 2020 at 16:03 | comment | added | Julie in Austin | My understanding is that nothing is faster, in terms of getting money, than a life insurance policy. My mother's paid in days. | |
| Jun 10, 2020 at 15:11 | comment | added | Harper - Reinstate Monica | And you can help your estate a lot by setting up a trust. It's pretty seamless for the heir(s), just happens. | |
| Jun 9, 2020 at 17:35 | review | First posts | |||
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| Jun 9, 2020 at 17:32 | history | answered | Julie in Austin | CC BY-SA 4.0 |