update: I may not have explained it clearly in my post below but I don't believe the intent is to close out the 401k or fund the life ins. policy using it. I will clarify with the consultant what the 401k proposal involves.
update 2: confirmed the 401k is a rollover and not a taxable event. Also, the universal policy was recommended due to a term policy not having survivorship
I have a couple special needs kids. My partner recently attended a seminar about setting up a Special Needs Trust for the kids so they have money to cover medical expenses when both of us die. The guy giving the seminar works in the insurance business and offered to do free consulting to help us get our finances in order. We've not signed anything yet.
We've met with him a couple times. The direction he thinks we should go is set up a SN trust and buy a universal life insurance policy to fund the trust. Is this a standard practice?
I've got around $50k in an old 401k account which I've not touched in over a decade. He is recommending that be moved into something to do with Morning Star involving a 404A5 form I need to fill out and bring to him at our next meeting. The 401k is basically allocated 30% High Risk and 70% stable return. both of us are in our late 40s.
I have very little knowledge on these subjects. I've tried to do some research on the topics we've covered but it's an abyss. Between working full time, and crisis mgmnt with the kids, I have very little cognitive function left by the end of the day to do little more than exhale.
I don't know enough about the subject to be comfortable making a decision right now. My partner would like things to already be done and in place. What kinds of questions should I be asking the consultant? Does any of this sound like a reasonable path to take for special needs financial planning? Thanks for any info. It's really appreciated.