Podcast Episode

16

#16 - Minors As Beneficiaries

During this 19th episode of the Simplifynance Podcast, host Rachel Stewart talks with Rebecca Hinton, Special Counsel with Taylor, Porter, Brooks & Phillips in Baton Rouge. Their discussion focuses on considerations when naming minor children as beneficiaries on retirement accounts and life insurance policies.

Episode Highlights:

- It’s common to wonder if naming minors as beneficiaries is a good decision.

- Introduction of special guest, Rebecca Hinton, and description of her specialty in estate and tax planning.

- Having young children is often a driver of important discussions like such as will prep, potential guardians and life insurance

- Biggest importance is protecting the minor...from themselves and others.

- Deciding on WHO will handle the money before age of majority

- What do to TODAY if we need a placeholder before formal estate plan is in place

- A will would include language that lays our rules for use of funds on behalf of the child(ren)

- Is document setup a long and hard process?

- Are laws different in Louisiana vs other states?

3 Key Points:

1. Work with an estate attorney and your financial advisor to find a custom solution that fits you and your family.

2. In Louisiana, we have forced heirship – children are entitled to a certain percentage of assets when a parent passes away, if under age 24.

4. Although the process is intimidating (and not fun), so many problems can be avoided with proper planning ahead of time.

Resources Mentioned:

Rebecca Hinton

Taylor, Porter, Brooks & Phillips