Our “Ask a Question” mailbag addresses the question, how much life insurance should I have?
“I recently had a baby, and it is time to buy some life insurance. But, I feel like I am being sold rather than advised. How much life insurance should I have? Lastly, is there a general rule about how much life insurance I should have as part of my estate plan?”
From Our “Ask a Question” mailbag: Life Insurance is a Non-Probate Asset, Unaffected by You Will:
“My sister went to jail, so mother changed her Will and gave me the entire estate. She forgot to remove my sister from her life insurance. Now I hear life insurance is a Non-Probate Asset. Who gets the life insurance?”
Ask a Question” mailbag: I need life insurance as part of my estate plan to cover the cost of my son’s college tuition and pay off the mortgage. What policy best fits my needs?
First, focus on the reasons for why you are purchasing life insurance. Life insurance is an excellent Estate Planningtool, but only if you are clear as to its purpose.
The “Ask a Question” mailbag addresses the question, how much life insurance do I need?
“How do I calculate how much life insurance do I need as part of my estate plan? My principal goal is making sure I provide for my children until they graduate from college.”
Our “Ask a Question” mailbag addresses naming children as beneficiary.
“Should my life insurance name my children as beneficiary?”
From our “Ask a Question” mailbag: My mother is incapacitated and living in an assisted living facility in Camden County, New Jersey. She appointed my brother agent under her Power of Attorney. My mother has a life insurance policy that names me as beneficiary. My brother refuses to make the payment, so the policy will soon lapse. Can I make the payment?
You certainly can make the payment, as the insurance company does not care who sends the check. The life insurance company will only care if the check clears.
From our “Ask a Question” mailbag: My mother is incapacitated and living in an assisted living facility in Burlington County, New Jersey. She appointed my brother agent under her power of attorney. My mother has a life insurance policy on her life that names me as beneficiary. My brother refuses to make the payment, so the policy will soon lapse. Can I make the payment?
You certainly can make the payment, as the insurance company does not care who sends the check. The life insurance company will only care if the check clears. If the policy is a term policy, you should consider when the policy lapses.
From our “Ask a Question” mailbag: My mother is incapacitated and living in an assisted living facility in Atlantic County, New Jersey. She appointed my brother Agent under her Power of Attorney. My mother has a life insurance policy that names me as beneficiary. My brother refuses to make the payment, so the policy will soon lapse. Can I make the payment?
The insurance company does not care who sends the check. Therefore, you certainly can make the payment.
The real question you should be asking here is: should you make the payment?
From our “Ask a Question” mailbag: Last year, my mother died in Philadelphia and named me as beneficiary of her life insurance. As my children were the contingent beneficiaries, I decided to disclaim the inheritance, and the insurance money passed to my children. I was recently in a car accident. If I am sued can they claim that life insurance money?
No one can force you to take an inheritance. If you properly disclaimed your interest in the life insurance, then you never received it.
Summary: In 2014, a trust utilizing Crummey powers allows an individual to contribute $14,000 a year ($28,000 for married couples) into a trust without diminishing the lifetime gift tax exemption. Instead, the gift is exempt from the gift tax under the Annual Gift Tax Exclusion. These gifts can help avoid the 40% Federal Gift Tax, preserving wealth for the family.
Peter Klenk is the founding member of Klenk Law, a seven-attorney boutique estate planning law firm. We serve clients in Pennsylvania and New Jersey. Peter Klenk received his Master’s in Taxation, LL.M., from NYU Law School and his J.D. from the University of Minnesota Law School. He served his country in the Navy JAGC during Desert Storm. Easy to talk to, feel free to call Peter for an appointment. We will make the process as easy as possible!
"I worked for Peter Klenk for 4 wonderful years. I can’t speak highly enough of everyone at the firm. Everyone truly cares about their clients and has a strong sense of responsibility to get things done right. I would highly recommend Klenk Law!"
Flora Novick
Fantastically easy and efficient team to work with getting our wills done. We will use Klenk again in the years to come. I highly recommend Peter Klenk.
My experience with Klenk Law was nothing shy of amazing. I had done some quick research when searching for an estate attorney and was immediately drawn to Klenk Law being a veteran owned business and due to their support for veterans, first responders, and teachers . Every member of their staff was knowledgeable and patient through every step of the process and with all of my questions. They were honest and transparent with pricing and expectations. They were very timely with communications and kept me in the loop throughout the process. I will definitely recommend Klenk Law to friends and family.
Had our will done with Peter and his team. Made the process super easy and understandable. His team lead by Laura Parisi were always available for questions and assistance. Professional and personable they made what can be a challenging experience hopeful and graceful. Cannot recommend their services enough!
Klenk Law is a professional and class act from start to finish. Peter, and all of his staff members are patient, clear, and trustworthy, all within the context of a user friendly, kind, and comfortable ambience.
Very friendly and easy to work with - definitely a better experience than I've had with other lawyers! Peter is very detailed and thorough. I've worked on previous versions of my will with other lawyers, and he pointed out things they'd never mentioned. Fast turnaround and very responsive to emails and phone calls.
Let us put our expertise to work for you.
Free consultation within 24 hours.
