The Revocable Life Insurance Trust (R-LIT)
Why an R-LIT?
As a prudent parent, you’ve likely purchased a life insurance policy. Yet even the best life insurance, without proper planning, is only half a solution.
Consider three facts. If something happens to you:
- Your life insurance money will be tied up in court-supervised guardianships until your children are 18.
- Your life insurance money will be handed to your children in a single lump-sum cash payment on their eighteenth birthday.
- Life insurance policies alone cannot budget the gradual payment of benefits to your children so they have money at the times they need it most.
At Living Trust Attorney Ltd., we’ve developed a safe and simple way to meet these challenges quickly, reasonably, and effectively.
Benefits of the Revocable Life Insurance Trust
The R-LIT is a unique financial solution we’ve designed for you to budget the delivery of your life insurance to your children over time—without having to spend the time and money necessary to execute a full estate plan.
The benefits you reap from the R-LIT are substantial:
- You sidestep the inconvenience, delay, and expense of a court-supervised guardianship.
- You avoid a lump-sum cash payment of your life insurance money to your 18 year old.
- You schedule the gradual payment of your life insurance benefit to your children to ensure their needs are met over time (housing, daily necessities, college tuition, etc.).
- You appoint the person who will manage your children’s money.
- You designate a legal guardian who will have custody of your children.
- You execute your R-LIT trust in a single meeting.
How We Can Help
As a practice that has pioneered the R-LIT, we are able to lead you swiftly through the process of establishing this type of trust. As a result, you get the peace of mind that comes when you plan for the prudent care of your children over time.