My mom asked me if I'd would take out a life insurance policy on her and my dad in order to have the funds to pay for closing up loose ends when they pass away. Note these would be very small policies and my parents don't own any real estate. Anyway, she says she wants me to be responsible for handling the financial aspects instead of allowing my sisters to do it. Is this even the best way to go about this? My parents aren't wealthy by any stretch of the imagination, so there is no concern over a valuable estate. I think it's that she trusts me more than she does my sisters. What is the best way to handle this type of situation?
Can you pay for them to take out a policy and name you as beneficiary? Maybe you should get an estate lawyer involved
That's what I suggested to her and it may be the easiest option. She claims that they can pay the premium, but even for small policies I'm sure the monthly premiums will be over $150 per month.
We have employee services through my husbands work so maybe they could offer me some advice? I didn't think of that until now!
Post by thatgirl2478 on Oct 6, 2015 9:58:56 GMT -5
In most cases where cars & credit cards are jointly owned between husband & wife, the surviving party remains responsible for the outstanding debt.
If you had a car or credit card that was only in one persons name and that person passes away, that's where the law gets tricky & is very state dependent.
I would look into if it would cost more for YOU to take out a policy on THEM vs THEM taking out THEIR OWN policy and you paying for it. It's not usually a problem for adults taking out policies on minors, but it may be if it's an adult taking out a policy on another adult.
Post by dr.girlfriend on Oct 6, 2015 13:06:17 GMT -5
Have her call selectquote.com and get some idea what the rates would be. My MIL's funeral cost $20k or so. If they are elderly, I would suspect even $20k of life insurance would cost more a month than a payment plan toward pre-paid funeral expenses. Whomever they name as beneficiaries/executors of their estate, they need to be upfront with all the kids about it. I don't understand when people do stuff on the down-low and cause all this drama at the worst time ever while people are still grieving. It always seems so selfish to me. Like, "I want to avoid conflict while I'm alive, I'll just let people hash it out themselves when I die." (Sorry, touchy subject, lol).