Most people are very familiar with individual life insurance policies that will pay a certain amount to beneficiaries upon the death of the policy holder. A survivorship, or second-to-die, life insurance policy insures two individuals, usually spouses, and only pays out when both have passed away.
There are several reasons a family may be interested in a survivorship policy as opposed to, or in addition to, an individual life policy. If a family has a substantial estate that may be subject to an estate tax, the proceeds of this policy may be used to offset some of what may be owed upon the death of the second policy holder….
Many people are familiar with trusts as tools for special needs planning. Not only will a trust ensure that money set aside for a disabled person’s care is used for that purpose, it can also help an individual remain eligible for benefit programs such as Supplemental Security Income (SSI) and Medicaid. Recently, the state of Florida began the ABLE United program which created a new way to save money for the use of a disabled person without adding to his or her assets….