My brother is my life insurance beneficiary, however I want him to distribute part of the funds to my nieces and nephews. Is their a legal document I need to complete to ensure they receive their entitlement tax free?

ANSWER

The BIDaWIZ Team's Answer:

We're assuming your nieces and nephews are minors which is why you haven't named them as beneficiaries in addition to your brother. If that is the case, then you are correct in not doing so because naming minors as beneficiaries can create a whole host of legal issues. However, what you can do instead, is create a trust that receives the insurance proceeds. The trust effectively acts as an intermediary until your nieces and nephews reach legal age. Do you need help in creating a trust? If so, you can submit a request to hire a tax attorney - http://www.bidawiz.com/hire-a-pro