Life Insurance beneficiary

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Danny W

Bronze
Mar 1, 2003
999
12
0
I have just taken out a term life insurance policy with my girlfriend as the beneficiary. She is Dominican living in Sosua with 2 young children plus a nephew she has taken in since her sister's death. I am supporting them and putting the kids through school. Since I have a grown family here in New York, I felt the simplest thing to do was to provide for my Dominican family separately - thus the policy.

My questions are:

1) What would be the safest way to make sure that she actually gets her hands on the money? (the policy is with Allstate)

2) What is the safest place for her to keep it?

If possible, I would like to to paid to her in installemnts, in order to protect her. I will be consulting with my attorney in NY and with Julio Brea of the Guzman Ariza firm in Sosua, but I wondered if anyone had words of wisdom for me. Thanks - D
 
H

HOWMAR

Silver
Jan 28, 2004
2,624
2
0
Danny W said:
I have just taken out a term life insurance policy with my girlfriend as the beneficiary. She is Dominican living in Sosua with 2 young children plus a nephew she has taken in since her sister's death. I am supporting them and putting the kids through school. Since I have a grown family here in New York, I felt the simplest thing to do was to provide for my Dominican family separately - thus the policy.

My questions are:

1) What would be the safest way to make sure that she actually gets her hands on the money? (the policy is with Allstate)

2) What is the safest place for her to keep it?

If possible, I would like to to paid to her in installemnts, in order to protect her. I will be consulting with my attorney in NY and with Julio Brea of the Guzman Ariza firm in Sosua, but I wondered if anyone had words of wisdom for me. Thanks - D
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Watch your back.

Seriously, have the benficiary of the insurance be a trust in the US. Name your dominican heirs as the beneficiaries of the trust with instructions on how the money is to be invested and distributed. Any lawyer or bank trust department can handle this for a fee.
 
R

rellosk

Silver
Mar 18, 2002
4,169
58
48
HOWMAR's suggestion is one way to go, especially if there are other assets that you want to transfer. If you are only dealing with the Insurance Policy, then you may not need to set up a trust.

All Life Insurance policies sold in the US have built in settlement options. In most instances you can specify at the time you purchase the policy how you want the proceeds paid (e.g.: In a lump sum, over 20 years, for the life of the beneficiary, etc). Ask the broker that sold you the policy about this.

Caution: In order to avoid paying any Estate Taxes on the Life Insurance proceeds you want to make sure that you are not the owner of the policy. The owner can be your girlfriend or a trust. If you have "Incidence of Ownership", the proceeds MAY be subject to Estate Tax in the US.
 
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