This was huge for me. My youngest daughter is the beneficiary of my policy as well as the beneficiary of any funds that remain in my bank account. Will be working on this as soon as possible. Thank you!!
@@asadb1990 or maybe the older ones have lived and the younger one would be the most impacted. Maybe a lot of things. Like don't just assume it's favouritism or their other children are horrible lol
@@KyTheDino could be anything and we dont know for sure. but not all parents are good or deserve to have kids. having been raised by narcissistic parents, i want to do right by my kids.
Hello. Life insurance baby here. One of my parents died of cancer when I was a kid and I grew up thinking I was poor and had nothing. I had a guardian who was at times very stingy which made me think we were poor. When I turned 18 I found out my mom actually left me money and it changed my life. I went off to college and started my life. Still love my guardian though.
You can also create a trust for your children to hold and distribute monies according to your instructions. Say you have 1,000,000. If you give a 21 year old that money, they will blow it in less than two years. We’ve had clients who’s kids blew it all in less than 8 months. Make sure to leave a trusted and financially responsible person as the trustee or have a financial institution make distributions accordingly. So, leave some money for their living expenses, education, and keep the rest working for them in financial products. Use age/life milestones as markers to make certain distributions. For example, graduating from college/post graduate studies, getting married, house down payment, car downpayment, investments, etc. The idea is to keep your kids working and making wise financial decisions after you are gone.
21 is a problem to leave it to them see: Paris Hilton at 21! 35 is pretty old if they can buy a house see: my classmate from a private college whose dad was with US Steel who wouldn’t work but wait for the $$$. Probably around 24-26 is better time.
Keep in mind any gifts to UTMA/UGMA are irrevocable. Also, money in these accounts impacts how much financial aid the minor can receive if/when applying for college, since it’s their account and not their parent’s. Naming a trust as the beneficiary is also an option.
I have been telling single parents/ divorced parents, not to leave Minor children as beneficiary unless they pick a Trusted person to be garden. But the UTMA account, I did not know. Thank you
Biggest financial mistake I ever made was with my 401k. My company had a Roth 401k when my kids were in college, but I didn't actually start contributing until year 3 of the 6 years I had kids in college. Because I was helping them with expenses, I was entitled to the tax credits, so my effective tax rate was extremely low. That is the time you NEED to be in a roth! i still retired with about $350k in my 401k.
People don't really know this, You need to create your own process, manage risk and stick to the plan, through thick or thin while also continuously learning from mistakes and improving.
I totally agree; I am 66 years old, recently retired, with approximately $1.2 million in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, I didn't do all this alone, but with the help of a financial advisor. Having one is currently the best way to trade in the stock market, especially for people nearing retirement.
You would be surprised how many “trusted friends or family members” aren’t so trustworthy once there’s a large sum of money involved. I feel like this girl always gives “advice” that looks great on paper but in reality it’s not really that simple.
As a kid who’s dad died and was the beneficiary of some of the life insurance I can say that dhs put the funds into an account that they would pull a small amount of money out of each month to pay my foster mom for things like food and cloths and other things and then when I turned 18 they transferred the rest of my money to me and it was still a very good amount.
True, not with insurance but my dad passed away so my little brother’s (underage) inheritance was automatically nominated to the government, my mom had to fight a lot to get the control back.
Consult an estate planning attorney. A trust can do this with insurance, money, real estate etc. Also, hire a firm to do this because you may outlive the relative.
We set up a living trust and had three people listed as financial guardian for our son. We figured if someone died or couldn't fulfill that duty then the next in line could. Its so important that you set this up. You never know what can happen to you and its peace of mind to know its taken care of now.
This is definitely not as black and white as this video tries to make it lol. In fact a lot of her videos I've noticed are black and white. It's more sounds like this is in the case of both parents dying or the child only having one parent, no will, and no Guardian.
Depends. Depending on the amount ,you might not need to get a court apponted guardian depending on what state you are in. You can also add clauses on your policy which says they are not able to get the proceeds until they are 18( age of majority, in some states its not 18). You can also put restrictons like they can only get certain amount per years. Basically good advise but before doing anything talk to your financial advisor and/or lawyer.
This one is true. I worked for a life insurance company and, no, that money isn't held until the child beneficiary becomes 18. The child's guardian can file a claim immediately. No idea how many times I had to tell a new 18 year old trying to collect on a policy for college expenses that the claim was paid out to the guardian years before.
@@palee8928 a guardian isn't under any obligation to give the child money. The idea is that the guardian pay for the needs of the child, not give them the money. Sadly the money is often mismanaged.
I remembered the Netflix movie I watched the other day, I care a lot (?!) it’s worth watching in terms of how much and how easy the court can ruin your lives
Yes! That movie is terrifying!!! Could you imagine working so hard and sacrificing actually getting to the 'comfortable living' part of life (I'm told it can be a thing), and then haircut shows up and shakes you down! It's a big scary nope.
Can the UTMA account be closed at anytime? For example, kid turns 18 no longer a minor so UTMA no longer needed. What are the fee to keep UTMA account active?
OH MY GAWSH my mom probably had no idea about this. She ended up passing away after I turned 18 but my uncle was claiming he was supposed to keep all of it until I turned 25. God brought many church friends and other family that helped me not have to go through that. Thank you for this important info.
Vivian thank you for the information. I wonder if you’d be able to go more into life insurance basics? I have zero knowledge and the narrative that I grew up with is that agents will sit and talk to you for hours to try and sell life insurance. I come from an immigrant family so I don’t know if that has any implications why but would appreciate some input or info. 💛💛💛 You’re inspiring. 😬
*What happens if* the trusted friend, the beneficiary dies alongside the original policy owner? Like in a vehicle accident? Does it just revert back to the original system? Where a guardian is selected by the state?
Oh my goodness! Why don't more financial advisors know this? I was looking for something like this years ago when my marriage fell apart. I didn't know this existed, but was describing the idea to the bank's financial advisor. He said it couldn't be done. (Turns out, he also didn't want to deal with me because I didn't have a lot of money at the time)
I am a single mother, and I was not prepared for life, and had to figure things out on my own. I have learned so much from your videos. Thank you. 💕 I am breaking all generational cycles, and I am teaching my kids all of this early. They have already been learning about investing stock with their own money in a bank account that I opened for them. So ty.
Before you appoint a guardian....ask the adult if they are willing and able. Don't just do it and they find out after you are go they have this responsibility. Some people are childfree by choice. They love your children but not as a permanent arrangement..
See in the UK, there has to be designated trustees of the trust that will invest and protect the trust for the benefit of the beneficiaries. Typically the beneficiary will not get that fund until they hit 18, and even then the trustees have the discretion to only give them what they need instead of a lump sum.
You just had a video of a similar situation where the father died and left considerable money to the 16 or 17 year old son. Then mom and stepdad spent the sons money on a new home. In this case, an ethical stranger might be a better choice that the trusted relative.
The guardian ad litem- appointees are can be just lazy as well - and simultaneously they are of the mind to build up their “services and hours” so they can bill you a high fee. One really has to be super strategic when dealing with planning for their estate.
But first claim title on your certificate of LIVE BIRTH and your offspring's too so you are the owner of these titles and bonds attached to it. You are still the beneficiary of the cestui que BC & social security securitized trusts. Open PRIVATE trust of your own and then set up things as you want. State National passport instead of U.S. citizen so you are seen as a natural breathing living man or woman standing on the land. U.S. citizen has no constitutional rights as they are UNDER Congress with benefits and privileges and limited rights.
True. But at age of majority (18) they may get $500,000-$+1,000,000 with no restrictions. Think more of a trust than this. Where you can put in stipulations
Vivian... LOVE your content. I am trying to fund one of your shorts about the 5 things to do when your child turns 18. Roth IRA is one if them. Can't find it anywhere. Keep up the AMAZING content.
This is brilliant. Thank you. I finally have a question for you: does it pay to be in debt? I lived in France for 32 years where they really don't have credit cards. So I came to this country with no debt and for five years I've been very careful to pay off my credit cards once they go over $1000. But now I'm thinking… Is there a smarter way? Thanks, Viv.
My 'trusted' aunt was made Executor of my mom's will, she then claimed she lost my mom's 5000 wedding ring in the confusion. And she failed to pay the bill for my mom's last 3 months of life insurance; so when mom died in the hospice, i didnt get anything but a bill. My aunt then sold everything she had and moved to the Bahamas. I bet she cashed my moms insurance and kept it. 'Trusted'
NOOO. UTMA accounts suck. Get a trust instead and name your trust the beneficiary. You can also get a life insurance trust with tax advantages. Get an estate planning lawyer for the love of god and do things properly.
First-I would caution on nominating a trusted relative or friend. While yes, they are “supposed” to adhere to the fiduciary responsibility of minor children, but sometimes it’s hard to police/monitor this if they do not. IMO I would suggest contacting an estate planning attorney to design a simple trust for management of such proceeds. This way no one-person is responsible per say, your exact wishes/direction are conveyed in writing, and no family member or friend is possibly offended by not being the “chosen” relative to be in such position. I’m not an attorney, but I’ve been in the financial industry 24 years and I’ve worked with many clients that have navigated many situations involving minors as bene’s.
maybe instead of investing those money on life insurance so early , invest in yourself now . Spending money to stay in a better shape and have a better quality and enjoyable life . 😅so you would actually live longer ( living till the normal average life expectancy) lol , and these type of scenarios wouldn’t happen !
This is horrible advice. Depending on the state, a UTMA automatically becomes the child's property at age 18 or 21. No better way to destroy a person's life then to leave them potentially millions of dollars when they are most likely not mature enough to handle it yet. Instead make a trust the beneficiary, not a UTMA. You can then put in controls as to what age the corpus of the trust is distrubuted to the child.
Absolutely use the UTMA unless you make a trust the bene. Minor benes are a nightmare to deal with if you don't. Get your ducks in a proper row people. It'll help your kids and the claims examiners who are just trying to do their jobs.
This very true. My dad passed when i was 7 he had very substantial life insurance policy through his work. And the. He also oassed away while at work as well so we got more money. My and my brother qere the sole beneficiary's but he appointed my grandma as the gaurdian but this was also mistake . Because we each got almost 300000 we were allowed to touch if were 18 in colly25 if not. But my Grandma husband thought he was helping and put some of the money alot in the stock market and lost it all keft us with about 200000 each. But se let us both touch it way before we were 18 that money was gone fast
My mother insisted I get a life insurance policy to take care of her if/when I died. However she refused to reciprocate and get a policy for my brother and I. My mother has serious issues, it's always about her.
Now this i did not know. So now I’m looking into it for my adult (28yo deaf autistic Non communicating) child. He in no way would ever be able to handle his money. But I want him to be taken care of. I want him fought over as to whom to live with ( his sisters) instead of shuffled off to a care home.
I’m pretty financially savvy and even sold life insurance for Northwestern Mutual back in the day but I didn’t even know about this fin setup. Thanks. I’ve subbed to your channel cos I think you have quality content.
Best way to get unalived by your spouse (or your teenage kids) is to open a big life insurance. Gift them some land or something that can’t cause your murder.
What about Pension Lump sum benefits? What if the child is already above 16 years, can I still name my child as a beneficiary in a life insurance policy?
And then the kid gets the money at 21...this is not great advice, even bad advice, depending on the amount, kid's maturity. This is why you need to talk to an estate planning attorney and do it in a way that's right for you. There is no 'right way to do this correctly.' Every family is different.
The policy I have lists my daughter to get 100%, if I die prior to her being 18+ her father will get the money. He has the same. If something happens to both we have it going to a trusted relative
What if you have multiple kids and only one life insurance policy? Do you have to pick one child to open a UTMA account for and list as the beneficiary?
OR... you name a custodian for the kids in the life insurance. Your suggestion is a very round about way to name the same "trusted" person to manage the funds.
This is why you need to find a good insurance agent. I have people telling me all the time “yeah I’ll put my son as the beneficiary” no ma’am you will not🤣. Last thing I want is your family not getting the money you are owed!
Be careful. UTMA can be considered an asset so if you are low income it counts as assets against public assistance. Sometimes these 15 second videos misleading. Was going to do this for my grandson but was advised against it due to other benefits.
this happened to me. i was 11, mom died, step dad became guardian, i signed over her life insurance policy without knowing what it was and he blew it on a failed business lol.
My partner put me down as the main beneficiary. Even though we fight a lot he knows I wont do anything to leave our daughter penniless. Im currently doing research on what type of account I can open up for her. How to help her credit score at an early age. So if maybe you can post more videos up on how we can help our children that would be wonderful.
I did this for my kids when they were underage, I made my mom the beneficiary and then she got a gambling habit I was able to change it very quickly lol.
Wouldn’t a trust be better so that the release of money is controlled by the terms of the trust? A trusted friend or relatives may not be that trust worthy when money is involved
Or name that trusted guardian you need to name for the Uniform Transfer account in your will and then not only the life insurance money but all the rest of your assets will be managed by a person of your choosing. Make a will.
This was huge for me. My youngest daughter is the beneficiary of my policy as well as the beneficiary of any funds that remain in my bank account. Will be working on this as soon as possible.
Thank you!!
Do not contact the number, they are a fake
why just the youngest. you playing favoritism or are the others terrible kids?
@@asadb1990 or maybe the older ones have lived and the younger one would be the most impacted.
Maybe a lot of things. Like don't just assume it's favouritism or their other children are horrible lol
@@KyTheDino to add.... Maybe the older ones are reckless and poor managers of money
@@KyTheDino could be anything and we dont know for sure. but not all parents are good or deserve to have kids. having been raised by narcissistic parents, i want to do right by my kids.
Hello. Life insurance baby here. One of my parents died of cancer when I was a kid and I grew up thinking I was poor and had nothing. I had a guardian who was at times very stingy which made me think we were poor. When I turned 18 I found out my mom actually left me money and it changed my life. I went off to college and started my life. Still love my guardian though.
You can also create a trust for your children to hold and distribute monies according to your instructions. Say you have 1,000,000. If you give a 21 year old that money, they will blow it in less than two years. We’ve had clients who’s kids blew it all in less than 8 months. Make sure to leave a trusted and financially responsible person as the trustee or have a financial institution make distributions accordingly. So, leave some money for their living expenses, education, and keep the rest working for them in financial products. Use age/life milestones as markers to make certain distributions. For example, graduating from college/post graduate studies, getting married, house down payment, car downpayment, investments, etc. The idea is to keep your kids working and making wise financial decisions after you are gone.
Noice!
The downside of trusts is that they can be expensive to maintain
Okay thanks but how do you do this?
21 is a problem to leave it to them see: Paris Hilton at 21! 35 is pretty old if they can buy a house see: my classmate from a private college whose dad was with US Steel who wouldn’t work but wait for the $$$. Probably around 24-26 is better time.
You are officially a Rich BFF! 🫂
Keep in mind any gifts to UTMA/UGMA are irrevocable. Also, money in these accounts impacts how much financial aid the minor can receive if/when applying for college, since it’s their account and not their parent’s. Naming a trust as the beneficiary is also an option.
I have been telling single parents/ divorced parents, not to leave Minor children as beneficiary unless they pick a Trusted person to be garden. But the UTMA account, I did not know. Thank you
@Your Rich BFF This is spam. Stop it.
Biggest financial mistake I ever made was with my 401k. My company had a Roth 401k when my kids were in college, but I didn't actually start contributing until year 3 of the 6 years I had kids in college. Because I was helping them with expenses, I was entitled to the tax credits, so my effective tax rate was extremely low. That is the time you NEED to be in a roth! i still retired with about $350k in my 401k.
People don't really know this, You need to create your own process, manage risk and stick to the plan, through thick or thin while also continuously learning from mistakes and improving.
I totally agree; I am 66 years old, recently retired, with approximately $1.2 million in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, I didn't do all this alone, but with the help of a financial advisor. Having one is currently the best way to trade in the stock market, especially for people nearing retirement.
Could you possibly recommend a CFA you've consulted with?
Her name is Sonya Lee Mitchell can't divulge much. Most likely, the internet should have her basic info, you can research if you like.
I just curiously searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you
You would be surprised how many “trusted friends or family members” aren’t so trustworthy once there’s a large sum of money involved. I feel like this girl always gives “advice” that looks great on paper but in reality it’s not really that simple.
My fear Exactly. Money changes people.
Thats what i was thinking
Who you trust is on you.
@@nuthinbutluv4u142 I think you’re incredibly naive to think someone won’t change once money is in their hands.
Maybe there's a way to control when the money can be spent; like no one can open the thing until the kid is of legal age.
As a kid who’s dad died and was the beneficiary of some of the life insurance I can say that dhs put the funds into an account that they would pull a small amount of money out of each month to pay my foster mom for things like food and cloths and other things and then when I turned 18 they transferred the rest of my money to me and it was still a very good amount.
See, if you were put into the foster system it legally should of been State money paying for it, NOT from your personal money.
IFHTS
I don’t have kids (or plan to), but I shared this with my coworkers. Thank you!!
True, not with insurance but my dad passed away so my little brother’s (underage) inheritance was automatically nominated to the government, my mom had to fight a lot to get the control back.
Me watching this as a 13 year old:
👁👄👁 ☕️
Consult an estate planning attorney. A trust can do this with insurance, money, real estate etc. Also, hire a firm to do this because you may outlive the relative.
We set up a living trust and had three people listed as financial guardian for our son. We figured if someone died or couldn't fulfill that duty then the next in line could. Its so important that you set this up. You never know what can happen to you and its peace of mind to know its taken care of now.
This is definitely not as black and white as this video tries to make it lol. In fact a lot of her videos I've noticed are black and white. It's more sounds like this is in the case of both parents dying or the child only having one parent, no will, and no Guardian.
Depends. Depending on the amount ,you might not need to get a court apponted guardian depending on what state you are in. You can also add clauses on your policy which says they are not able to get the proceeds until they are 18( age of majority, in some states its not 18). You can also put restrictons like they can only get certain amount per years. Basically good advise but before doing anything talk to your financial advisor and/or lawyer.
This one is true. I worked for a life insurance company and, no, that money isn't held until the child beneficiary becomes 18. The child's guardian can file a claim immediately. No idea how many times I had to tell a new 18 year old trying to collect on a policy for college expenses that the claim was paid out to the guardian years before.
What type of claim a guardian can file?
How would they not know that if they were getting that money from the guardian?
@@palee8928 a guardian isn't under any obligation to give the child money. The idea is that the guardian pay for the needs of the child, not give them the money. Sadly the money is often mismanaged.
Love the series of unfortunate events reference
MEE TOO
I remembered the Netflix movie I watched the other day, I care a lot (?!) it’s worth watching in terms of how much and how easy the court can ruin your lives
Yes! That movie is terrifying!!! Could you imagine working so hard and sacrificing actually getting to the 'comfortable living' part of life (I'm told it can be a thing), and then haircut shows up and shakes you down! It's a big scary nope.
Movie name
@Declen Davis "I care a lot"
Can the UTMA account be closed at anytime? For example, kid turns 18 no longer a minor so UTMA no longer needed. What are the fee to keep UTMA account active?
She: trying to inform me about some really important stuff
Me : trying to listen to anti hero 👉🏻👈🏻
THIS
Me reads "huge financial mistake most parents make" me: having kids in the first place?
LOL
OH MY GAWSH my mom probably had no idea about this. She ended up passing away after I turned 18 but my uncle was claiming he was supposed to keep all of it until I turned 25. God brought many church friends and other family that helped me not have to go through that. Thank you for this important info.
*me being more concerned about the series of unfortunate events poster*
Thats interesting! I had no ide! Need to look into this asap!
Amazing advice !!!! Thanks Rich BFF !!!!! 💰
Exactly how my deceased sister's children was taking advantage they didn't receive a dime of her policy😢
Vivian thank you for the information. I wonder if you’d be able to go more into life insurance basics? I have zero knowledge and the narrative that I grew up with is that agents will sit and talk to you for hours to try and sell life insurance. I come from an immigrant family so I don’t know if that has any implications why but would appreciate some input or info. 💛💛💛 You’re inspiring. 😬
*What happens if* the trusted friend, the beneficiary dies alongside the original policy owner?
Like in a vehicle accident? Does it just revert back to the original system? Where a guardian is selected by the state?
A SERIES OF UNFORTUNATE EVENTS was a really good movie especially with JIM CARREY as The Evil Guardian
Oh my goodness! Why don't more financial advisors know this? I was looking for something like this years ago when my marriage fell apart. I didn't know this existed, but was describing the idea to the bank's financial advisor. He said it couldn't be done. (Turns out, he also didn't want to deal with me because I didn't have a lot of money at the time)
I am a single mother, and I was not prepared for life, and had to figure things out on my own. I have learned so much from your videos. Thank you. 💕 I am breaking all generational cycles, and I am teaching my kids all of this early. They have already been learning about investing stock with their own money in a bank account that I opened for them. So ty.
Before you appoint a guardian....ask the adult if they are willing and able. Don't just do it and they find out after you are go they have this responsibility. Some people are childfree by choice. They love your children but not as a permanent arrangement..
Thank you for saying "birth or adoption" 💙
See in the UK, there has to be designated trustees of the trust that will invest and protect the trust for the benefit of the beneficiaries. Typically the beneficiary will not get that fund until they hit 18, and even then the trustees have the discretion to only give them what they need instead of a lump sum.
Lol....problem is some guardian equally untrustworthy 😂
You just had a video of a similar situation where the father died and left considerable money to the 16 or 17 year old son. Then mom and stepdad spent the sons money on a new home. In this case, an ethical stranger might be a better choice that the trusted relative.
Then that 17 year old can sue for that money back. Maybe it wasn’t on his name
I list my husband as the beneficiary. I guess I will look into this in case something happens to both.
So it's kinda like a will ....
I am SO Grateful fb algorithms sent me in Your direction ❤ This one hits home HARD. Thank You!
The guardian ad litem- appointees are can be just lazy as well - and simultaneously they are of the mind to build up their “services and hours” so they can bill you a high fee.
One really has to be super strategic when dealing with planning for their estate.
But first claim title on your certificate of LIVE BIRTH and your offspring's too so you are the owner of these titles and bonds attached to it. You are still the beneficiary of the cestui que BC & social security securitized trusts. Open PRIVATE trust of your own and then set up things as you want. State National passport instead of U.S. citizen so you are seen as a natural breathing living man or woman standing on the land. U.S. citizen has no constitutional rights as they are UNDER Congress with benefits and privileges and limited rights.
True. But at age of majority (18) they may get $500,000-$+1,000,000 with no restrictions.
Think more of a trust than this. Where you can put in stipulations
Vivian... LOVE your content. I am trying to fund one of your shorts about the 5 things to do when your child turns 18. Roth IRA is one if them. Can't find it anywhere. Keep up the AMAZING content.
Guardians don't determine the use of funds, conservators do
Couldn't you just make that trusted individual the beneficiary? They're going to have access anyway.
This is brilliant. Thank you. I finally have a question for you: does it pay to be in debt? I lived in France for 32 years where they really don't have credit cards. So I came to this country with no debt and for five years I've been very careful to pay off my credit cards once they go over $1000. But now I'm thinking… Is there a smarter way? Thanks, Viv.
How is this different from doing a Revocable Living Trust
Planning to buy insurance policy? Nah, just buy physical gold instead
My 'trusted' aunt was made Executor of my mom's will, she then claimed she lost my mom's 5000 wedding ring in the confusion. And she failed to pay the bill for my mom's last 3 months of life insurance; so when mom died in the hospice, i didnt get anything but a bill. My aunt then sold everything she had and moved to the Bahamas. I bet she cashed my moms insurance and kept it. 'Trusted'
NOOO. UTMA accounts suck. Get a trust instead and name your trust the beneficiary. You can also get a life insurance trust with tax advantages. Get an estate planning lawyer for the love of god and do things properly.
First-I would caution on nominating a trusted relative or friend. While yes, they are “supposed” to adhere to the fiduciary responsibility of minor children, but sometimes it’s hard to police/monitor this if they do not. IMO I would suggest contacting an estate planning attorney to design a simple trust for management of such proceeds. This way no one-person is responsible per say, your exact wishes/direction are conveyed in writing, and no family member or friend is possibly offended by not being the “chosen” relative to be in such position. I’m not an attorney, but I’ve been in the financial industry 24 years and I’ve worked with many clients that have navigated many situations involving minors as bene’s.
maybe instead of investing those money on life insurance so early , invest in yourself now . Spending money to stay in a better shape and have a better quality and enjoyable life . 😅so you would actually live longer ( living till the normal average life expectancy) lol , and these type of scenarios wouldn’t happen !
This is horrible advice. Depending on the state, a UTMA automatically becomes the child's property at age 18 or 21. No better way to destroy a person's life then to leave them potentially millions of dollars when they are most likely not mature enough to handle it yet.
Instead make a trust the beneficiary, not a UTMA. You can then put in controls as to what age the corpus of the trust is distrubuted to the child.
What happens if the UTMA passes away before the child becomes an adult?
Absolutely use the UTMA unless you make a trust the bene. Minor benes are a nightmare to deal with if you don't. Get your ducks in a proper row people. It'll help your kids and the claims examiners who are just trying to do their jobs.
What if your kid is of legal age? Im 23 now, my parents put everything in my name a while back just in case.
This very true. My dad passed when i was 7 he had very substantial life insurance policy through his work. And the. He also oassed away while at work as well so we got more money. My and my brother qere the sole beneficiary's but he appointed my grandma as the gaurdian but this was also mistake . Because we each got almost 300000 we were allowed to touch if were 18 in colly25 if not. But my Grandma husband thought he was helping and put some of the money alot in the stock market and lost it all keft us with about 200000 each. But se let us both touch it way before we were 18 that money was gone fast
THIS!! My family struggled to hold the wealth long enough for us to become of age. I was told we lost more than 10k each kid.
The only problem is I don’t have anyone trusted. Not for lack of trying. Money corrupts
A Trust law firm would be a good investment
Hehe, I thought this will be about parents insuring their kids life... just like with me... Guess my case was rare.
Oh my gods I just sat here saying what the fuck for five minutes. Ok making that change asap for my niblings!
My mother insisted I get a life insurance policy to take care of her if/when I died. However she refused to reciprocate and get a policy for my brother and I. My mother has serious issues, it's always about her.
Now this i did not know. So now I’m looking into it for my adult (28yo deaf autistic Non communicating) child. He in no way would ever be able to handle his money. But I want him to be taken care of. I want him fought over as to whom to live with ( his sisters) instead of shuffled off to a care home.
I’m pretty financially savvy and even sold life insurance for Northwestern Mutual back in the day but I didn’t even know about this fin setup. Thanks. I’ve subbed to your channel cos I think you have quality content.
"Think trusted relative or friend".....sorry, but that does not exist.
Check your laws in your state. Utma are taxable in the state of Maryland😢
Best way to get unalived by your spouse (or your teenage kids) is to open a big life insurance. Gift them some land or something that can’t cause your murder.
What about Pension Lump sum benefits? What if the child is already above 16 years, can I still name my child as a beneficiary in a life insurance policy?
And then the kid gets the money at 21...this is not great advice, even bad advice, depending on the amount, kid's maturity. This is why you need to talk to an estate planning attorney and do it in a way that's right for you. There is no 'right way to do this correctly.' Every family is different.
What trusted friends and family members? 🤔
...
😥
I’m surprised there was no comment on whole life vs term life insurance. To put it simply, go with term life insurance.
I work for a small credit union that does not offer UTMA. Please be careful with saying "any financial institution can"
The policy I have lists my daughter to get 100%, if I die prior to her being 18+ her father will get the money. He has the same. If something happens to both we have it going to a trusted relative
What if you have multiple kids and only one life insurance policy? Do you have to pick one child to open a UTMA account for and list as the beneficiary?
I’m single and have no kids yet. I assigned beneficiaries on all accounts so it’s easy for family should anything God forbid happen to me
OR... you name a custodian for the kids in the life insurance. Your suggestion is a very round about way to name the same "trusted" person to manage the funds.
This is why you need to find a good insurance agent. I have people telling me all the time “yeah I’ll put my son as the beneficiary” no ma’am you will not🤣. Last thing I want is your family not getting the money you are owed!
Incorrect the life company holds the money until the child is 18. They get the money plus interest earned
Be careful. UTMA can be considered an asset so if you are low income it counts as assets against public assistance. Sometimes these 15 second videos misleading. Was going to do this for my grandson but was advised against it due to other benefits.
I thought they can legally get the money when they turn 18. Plus it's important to appoint godparents.
What happens if the parent dies before the child turns 18 and they need some of that money to survive on and only 17? They can’t access until 18?
this happened to me. i was 11, mom died, step dad became guardian, i signed over her life insurance policy without knowing what it was and he blew it on a failed business lol.
My partner put me down as the main beneficiary. Even though we fight a lot he knows I wont do anything to leave our daughter penniless. Im currently doing research on what type of account I can open up for her. How to help her credit score at an early age. So if maybe you can post more videos up on how we can help our children that would be wonderful.
I did this for my kids when they were underage, I made my mom the beneficiary and then she got a gambling habit I was able to change it very quickly lol.
Your richBFF who has never worked a single day in her life is going to give you advice. What could go wrong?
Am I not living in the USA and laws are different for me ? Yes. Do I still watch the whole video ? Also yes 😂
Ok, bestie. What about this one. Can a grown child take out life insurance policies on their parents?
I just put it in a trust for my kids. He'll I don't want them to have full access so they can't borrow against installments
Does this work for South Africans too? 🤔 🤔 Please help.
The series of unfortunate events I died laughing 😂😂. I just finished watching that and I can’t believe it’s a kids show
I thought the money just wasn’t touched until the kid was 18?
Vivian, if you don’t have anyone that you can trust…. What’s the next best solution?? Thanks!
A Trust Law firm
Wouldn’t a trust be better so that the release of money is controlled by the terms of the trust? A trusted friend or relatives may not be that trust worthy when money is involved
Your video was way too loud. Like those annoying ads on tv that are way higher than the thing you're watching suddenly. Please keep it lower
Advisor here… if your advisor doesn’t even bother telling you this… get a new advisor lol.
That's what I did with my daughter. I switched up when she became an adult. I did like the rich and put my assets in the trust for my daughter.
Please post about trusts and wills. Thank u.
Or name that trusted guardian you need to name for the Uniform Transfer account in your will and then not only the life insurance money but all the rest of your assets will be managed by a person of your choosing.
Make a will.
Though I am unfamiliar with utma accounts a trust fund of some kind would most likely be better as YOU direct how the money is used and no one else
What if you want to leave your money to godchildren and nephew?