Remember that old Smothers Brothers
routine? At some point in the show, Tom accused Dick of being
the favorite son. Of course, that was comedy and meant to get
a laugh. But it may not be too much of a stretch to imagine that
your own children might feel the same way if you don’t
take care when you plan your estate.
Who
Gets What?
Choosing how you’ll divide your assets
among your children can be complicated, especially if there’s
a valuable asset that you plan to leave to just one or two
of them. If you want all your children to share equally in
your estate, leaving a large asset to some children and not
the others presents a dilemma.
Life Insurance to the Rescue
Maybe you think of
life insurance only as something that protects your family
if you die prematurely. But life insurance can also help you
equalize your children’s
inheritances.
Let’s say, for example, that you own a
small business but only your daughter helps run it. Your son
works in a different profession and isn’t interested
in getting involved. How can you arrange it so your daughter
gets the business when you die and your son still receives
his share of your assets?
Or suppose your daughter lives with
you in the family home, which is your largest asset. You want
her to inherit the house at your death, but you also want your
son to share equally in your estate. What steps can you take
so that both children receive a comparable amount?
In either
situation, you could take out a life insurance policy and name
your son as the beneficiary. As long as the policy amount approximates
the value of the business or house, both children would receive
inheritances that would be nearly equal.
People often underestimate the importance of
life insurance. Equalizing inheritances for loved ones can
help create family harmony and bring you peace of mind. Our Security
Mutual Life Representatives, working in conjunction with
your other professional advisors, can be instrumental in helping
you plan for the best financial future for your family. Please contact
us if you have any questions or are in need of planning
assistance. (Legal Notice)
Visit
Our Planning Library
R 01/07
|
