Clear Path, Peaceful Heart

Joe, 49, is a single father who has a daughter, Amber, 23. Amber has been struggling with drug and alcohol addiction since she was 18, it began shortly after her mother passed away. Since that time, Amber has been in and out of treatment centers, with the attempt to reach sobriety from her addictions. Throughout the years, Amber maintained a strong relationship with her dad, who has been by her side as a sole confidant and supporter through her “dark days”. While Joe is still in good health, he is concerned with Amber’s personal and financial well-being, especially when she experiences her relapses. What if anything unexpected should happen to him, what would Amber’s future look like? Joe’s primary concern is that the money from his estate could potentially be squandered on drugs and alcohol if she is unable to conquer this disease; however, the thought of leaving Amber without financial security for her future is very upsetting to him.

Joe expresses his concerns with his Financial Professional, John, who explains there are many individuals with loved ones that have special circumstances like Amber’s. John discusses with Joe various ways to safeguard Amber’s financial future, one of them being through a trust. He goes on to explain that trusts are legal entities that can be used to structure the distribution of assets among beneficiaries. He suggests to Joe that he should establish an Irrevocable Life Insurance Trust (ILIT) which will provide an additional cushion of funds that will be protected from estate taxes and can be distributed to Amber with instructions on when and how she can receive the funds. This will provide the financial protection Joe wants for his daughter and her future.

Working with his Trust & Estate Attorney, Jason, along with his Financial Professional, Joe establishes an Irrevocable Life Insurance Trust. Jason advises Joe to appoint a guardian in the trust to watch over Amber. He further explains that the trustee will not be able to distribute funds without the approval from the guardian.

Joe is so relieved that he had the conversation with John about Amber. The trust has given him the confidence that no matter what the future holds, there will always be financial security for Amber and she will always be looked after by her guardian.