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It's important to know some assets avoid probate and go directly to the beneficiary. These include things like a life insurance policy, or a 401(k) with a benef
by JMTQp8lwXL 5y ago
It's important to know some assets avoid probate and go directly to the beneficiary. These include things like a life insurance policy, or a 401(k) with a beneficiary information you can input, and possibly even update online (low friction). The health bill can go to the estate, but the estate also isn't comprised of the retirement account.
- slumdev 5y agoThis should be common knowledge (but, unfortunately, isn't.) A primary breadwinner should carry at least 10x his family's annual living expenses in term life insurance coverage. Once the size of his retirement accounts exceeds this, he can start thinking about reducing the insurance. Both will pay directly to beneficiaries in the event of his death.
- mindslight 5y agoYou can setup a simple trust with the right form/software, and a visit to your bank for notarization. I don't know if a revocable living trust would protect your heirs against healthcare shakedowns, and it would likely depend on the state. But if the current corrupt system continues much longer, I can see irrevocable trusts becoming popular to protect yourself even while alive.