Could Not My Heirs Own My Insurance Instead of Using a Trust?
If you made one or all of your heirs the owners of the policy, you would be taking many risks. If you have several heirs, it is cumbersome to make gifts to all and then for all of them to get together to pay the insurance premiums. However, if you only name one heir for simplicity’s sake, you risk that one heir refusing to share the proceeds with the others when you die. Also, sharing the proceeds very well could be a taxable gift on his or her part.
Furthermore, before you die, if your heirs own the policy, they could cash it in any time and frustrate the purpose of the policy – to pay the estate taxes.
Probably worst of all, if your heir had financial problems, such as an IRS problem or a bankruptcy, the insurance would be seized by his or her creditors. You probably trust this person now, but you never know what problems may crop up later.
On the other hand, an insurance trust is a safer alternative. You would still name the same one or more heirs as the trustee(s) to take out the policy and run the trust (generally the same as the successor trustee(s) under your living trust). However, the trustees would have a duty to act properly and could not change who would get the money in the end. Moreover, if any trustee had financial problems, their creditors could not touch the insurance trust assets. Therefore, the insurance trust allows you to better assure that your intent is carried out.
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Valued Client Reviews
Lisa Vertz March 14, 2022. I worked with Brandon Johnson and he was very thorough and excellent to work with on a living trust and will. 
Roman Kisz December 21, 2021. Antonio is great. I work in a related industry, but my wife does not. He sat down with us and helped to get our estate in order by walking us through the trust process. My wife was very happy we took the time to protect our family and to get this crucial step in life accomplished. Thanks again! 
Don Houle August 13, 2021. A great place to place your trust for a trust 
Mike Ricci December 5, 2020. 
Kathy Locklear October 3, 2020. 
Kyle T September 22, 2020. Kevin is very knowledgeable, professional, and easy to work with. Highly recommend for Tax and Estate planning. 
Joan Riley January 16, 2018. I have just completed my trust work with Mr. Staker and I could not. be happier. I was referred to him by a prominent San Fernando Vally commercial realtor so I had high hopes when I met with him and I was not disappointed. Now I am insisting that my children go to him to make certain that their trusts are in order. Joan Riley 
Bryan Freeberg May 2, 2017.
