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David P. McCabe,
WMCP®, ChFC®, CLU®
Financial Planner
Nathaniel D. High, RICP®
Financial Planner
Nicholas J. Over, CFP®
Financial Planner
Sara E. Martin
Operations Manager
Jennifer A. McCabe
Client Service Specialist
jennifer.mccabe@prudential.com
Centuria Financial Group
2333 Baltimore Blvd Suite B
Finksburg, MD 21048
Phone: 443-952-7232
January/February 2023
Claiming Life Insurance Benefits
If one of your estate planning goals is to ensure assets remain in your family, an inheritance trust may be an option to consider. Leaving assets in a trust allows your children to keep inherited assets separate from marital assets and protects assets from creditors during financial hardship.
How It Works
The assets in the trust benefit you during your lifetime and then pass to separate trusts for each of your children upon your death or the deaths of you and your spouse. You remain the trustee until your death. Successor trustees can be your spouse, your children, or a trust company to ensure that no one outside the family has access to the trust assets.You can transfer assets to the trust throughout your lifetime, and you’ll be able to name a beneficiary — often a grandchild — to receive any assets remaining in the trust when your child dies. You can also appoint a trustee, possibly from among your other children, to manage the assets for a minor grandchild at the death of a parent.
Limited Powers
As trustee, your child has limited power to change the trust’s beneficiary. However, the new beneficiary must be another one of his or her children or another one of your children or grandchildren. If your child dies without children, the trust can direct unused assets to be divided among your remaining blood relatives, including the deceased child’s siblings or your other grandchildren.Keep It in the Family
An inheritance trust can protect valuable assets from accidentally slipping away from your family.As an example, suppose you own a lake house that’s been in your family for a couple of generations. Assets that pass through an inheritance trust are not considered joint marital assets and, therefore, are protected if your child and a spouse divorce. The lake house stays with your blood relatives, since any assets remaining in the trust are distributed to your grandchildren or your other children when your child dies.
Your financial and estate planning professional can help you determine if an inheritance trust could complement your estate plans.
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David P. McCabe, Nathaniel D. High, and Nicholas J. Over are Financial Planners with, and offer securities and investment advisory service through LPL Enterprise (LPLE), a Registered Investment Advisor, Member FINRA/SIPC, and an affiliate of LPL Financial.
LPLE and LPL Financial are not affiliated with Centuria Financial Group.
This newsletter is general educational information provided by a Prudential Financial Professional and is not intended to market or sell any specific products and services, but rather provide general information about the subject matter covered only.
Centuria Financial Group and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.
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