Life Insurance / Trusts / Estate planning

From: "Paul Wojcik" <paul_wojcik@hotmail.com>
Subject: Life Insurance / Trusts / Estate planning
Date: Mon, 15 Jun 1998 08:28:15 PDT

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Since Mr. Lester invited Life Insurance questions, I figured I would 
pose a question or two that I've been thinking about.

I want to have term coverage on myself with my wife as benficiary, 
followed by my son if my wife doesn't survive me.

In order to avoid excessive estate taxes in the event that my wife and I 
both die and my son is to collect the insurance, is it advisable to 
establish an irrevocable trust and have the trust by the policy and be 
the benficiary?  This seems to be the best structure, but what happens 
if we plan this way and then only I die?  I could have her as a primary 
benficiary, but I wouldn't want the policy payoff to be a large gift 
from the trust to her...  Should she and my son both be trust 
benficiaries?  Can she also be the trustee?

Many thanks for help on these confusing (at least for me) topics,
Paul

 

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