Gradual Inheritance Strategy
Gradually transfer an inheritance to your beneficiaries.
"When you pass away, the proceeds of your life insurance and/or savings accounts are traditionally paid to your beneficiary(ies) as a lump sum. ... Depending on your circumstances, you may prefer your beneficiary(ies) to receive their inheritance more gradually."
This strategy may benefit you if:
You are worried about how your spouse or children will manage the finances once you have passed away
You are concerned about passing on a large lump sum death benefit to a beneficiary who is young or inexperienced at managing money
You would prefer to have your beneficiary(ies) receive a controlled income stream, rather than a lump sum, to ensure that the money is not all spent at once.
You want to provide lifetime support for a financially dependent beneficiary.
This strategy utilizes an "Annuity Settlement Option" to control the estate after death, and has several benefits over a formal trust
No cost to set up
Simple to establish and with no ongoing management fees
You can amend the amounts or beneficiary(ies) at any time without having to pay a lawyer to amend or redraft a trust agreement
Also, all distributions can be i) private - outside of your will; ii) multiple instructions for multiple beneficiaries; predictable and guaranteed income payments for the period of time specified by you.
Talk to us about your specific preferences. These are more common than you think.