Intent #4: That there be some money immediately available for your funeral, burial, and other expenses and obligations you will leave behind.

Note: Many of the risks inherent in Beneficiary Designations (A) through (F) were explained in the Intent #1 Section and won't be repeated in this section; however, they do apply to this section as well.

Beneficiary Designation (A): As with every other intent, a trust as beneficiary would be able to handle Intent #4 quite easily as long as it was set up to do so, and the trustee is competent etc.

Beneficiary Designation (B): Simply naming a trustworthy adult as beneficiary could work. They should be honest enough to take the money and pay off the final expenses and obligations you have and be done with it! Of course they would have to have been made aware that this was your intent. There is one little problem though. Since it would now be their money they may face gift taxes or have to use part of their gift tax exemption to avoid the tax; unless of course this person was your spouse, but we are assuming in this situation that both you and your spouse (if applicable) are deceased.

Beneficiary Designations (C) Through (F): Any of these have the appearance of the money being intended exclusively for the children and would not work well. So if you used one of these designations and the proceeds became payable while the children were still minors, then the only way for the final expenses and obligations to be paid is that the executor of your estate would have to sell off other things you own and use the money from that sale.

Licensed in:
Arizona, California (license #0629626), Oregon, Texas, and Virginia. For other states, inquiries are referred to agents licensed to handle insurance in that particular state.

PGA Financial has no intent to generate interest in any particular life insurance company or specific policy, but rather to inform and educate you on the general concept -- after which, if you are interested, a broker at PGA Financial will be glad to research companies that offer such plans, get you a quote and assist you in making a choice. If you do become interested and obtain a policy, the broker would be compensated by the insurance company.

© 1998 The PGA Financial Co. All rights reserved.