Saddler

Today I am going to talk a little about the problems I see with beneficiary selections on both IRAs and Life Insurance. First lets review exactly what a beneficiary is and the goal of our beneficiaries.

The beneficiary provision is supposed to allow for the naming of a primary and contingent beneficiary. The primary beneficiary is the person designated to receive the death benefits if the insured dies. The contingent is the person designated to receive the death benefits if both the insured and the primary die at the same time. Beneficiaries can be a person, a business, or a trust in most cases. An irrevocable beneficiary is a beneficiary who can be changed by the policy holder only with the permission of that beneficiary.

Life Insurance Beneficiary Problems
Many individuals designate their spouse as the primary beneficiary and their children as contingent beneficiaries. There are two problems here. First, the spouse is the primary beneficiary and second the children are the contingent beneficiaries. The thought is, if the husband or wife were to die the money will be passed onto the spouse. If the husband and wife die simultaneously, the benefits will be passed on to the children.

The first problem here is what if the you and your spouse were in some kind of accident where you died first and shortly after your spouse died, may be weeks, days, or hours. Since your spouse did survive you, your contingent beneficiaries are not eligible to receive your benefit. This means the insurance company will pay the proceeds of your policy to their probate estate. Lets say in this accident both the insurance and primary beneficiary both die at the same time. You would think that the benefit would go to the contingent beneficiaries. This is where the second problem starts.

The second problem with this scenario is that children were the contingent beneficiaries. Young children cannot be paid life insurance proceeds, with the age varying state by state. This means that if there was no will in place the state would choose who the guardians will be for your surviving children. They may be or not be who you would have chosen had you done your will. As such, death proceeds will be paid to the new guardians of your kids, which means your kids may or may not get the benefit.

Here is your solution. Set up a Uniform Gift to Minors Account (UGMA), a Uniform Transfer to Minors Account (UTMA), or a Trust in the childrens name. Both the UGMA and the UTMA are free. With either a UGMA or a UTMA the insurance company will pay the death proceeds into the account. When your children reach age of majority they will then have access to the money. However, most parents would not want their 18 year old child to have access to 500 thousand or 1 million dollars. So, the next best thing is to set up a trust as the primary and contingent beneficiary. This way you as the insured can chose at what age and what amounts money will be distributed to both the primary and contingent beneficiaries. This does cost a little but is the best alternative.

What if you are the only person to die in an accident. Your spouse still may not get the benefit even if they were the primary beneficiary. Here is an example why. Lets say your primary beneficiary received a death benefit of 500,000 dollars. For some reason they latter got remarried. The new spouse after years of begging talks them into buying that dream house on the mountain. Everything is fine at first but for some reason they end up getting a divorce. During the settlements of the divorce the house is given to your surviving beneficiarys ex-spouse. In this example because you put your spouse as the beneficiary, you end up paying your benefit to some stranger you dont know who

marries your spouse after your death. How do you feel about that? Solution set up a trust as the primary beneficiary. This way you control the money from the grave.

We did not even talk about other issues such as step parents or kids, special needs beneficiaries, whether to designate beneficiaries as per stirpes or per capita. Every insurance policy should specify one or it is automatically deemed per capita. If you have any questions determining which one you should have call my office. I dont have enough room to explain them here today, I still need to touch on IRA beneficiaries.

IRA beneficiary Problems.
You may be thinking that if a trust is the best selection for your life insurance that it must be good for your IRAs as well. Where there is reason you may want to put your trust as the beneficiary this will in most cases cause more problems. Generally speaking you should never name a trust as the beneficiary of your IRA, even if your attorney tells you to do it. Trusts as IRA beneficiaries create unique problems and tax complications even when executed perfectly. Basically speaking, if the trust fails to qualify as a designated beneficiary, then there is no designated beneficiary, and the trust beneficiary will not be able to stretch post death required distributions even over the surviving spouses life expectancy. In that case, the IRA will be paid our either under the five-year rule or over the remaining life expectancy of the deceased IRA owner.

I am out of room for todays topic so let me just say there are many more issues to discuss with both life insurance, IRA, or 401(k) beneficiaries. Hopefully this got you thinking and reviewing what you have. If you have any questions or feel you need a review of your current beneficiary selections or need some ideas what to change please feel free to call my office.

If you or someone you know needs some help managing retirement assets, setting up a retirment savings plan, or have life insurance needs, just give me a call at 801-545-0696. You can also visit our website at www.stonecreekwealthadvisors.com

Many Companies on the market claim that they have the best product to make your penis bigger yet fail in doing so, and are dangerous to the overall health of your penis. However, there is one product that can safely and effectively make the penis bigger;

Penis Extenders are one of the few devices on the market that are able to safely and effectively enlarge the penis. This device is comprised of a head and base that are held together by two extension rods on each side.

The extension rods have been specially designed to apply a controlled force of traction to the shaft of the penis, which over time will in effect increase the length and girth size of the penis both in its flaccid and erect state.

The reason why the penis extender is safe to use is due to the controlled manner in which the two extension rods apply the force of traction. The force of traction applied is always just enough to help increase the size of the penis without injuring it.

In order to understand how the penis extender uses the force of traction to enlarge the penis, you need to first understand the basic anatomy of the penis shaft;

Three chambers lie next to each other in the shaft of the penis. The two largest chambers are called corpus cavernosa and are responsible for holding 90% of the blood that flows into the penis when aroused.

The capacity of the corpus cavernosa is one of the main factors that dictate the overall size of the penis.

The force of traction applied by the two extension rods of the penis extender causes the cells in the erectile tissue of the corpus cavernosa to multiply in order to keep up with the traction device.

The multiplication of these cells in turn increases the capacity of the corpus cavernosa which results in a bigger penis both in its flaccid and erect state. These results are permanent.

Please be warned that there is a noticable difference between a good and poor quality penis extender. Risk of penis injuries have been known to be associated with poor quality penis extenders. Always do your research before purchasing any penis enlargement device.

The large quantity of mail delivered every day by the US postal service is about 500 million pieces.

This is a huge amount of mail. The cause could be the low price of postage fees and the fact that people are accustomed to shuffling paper and envelopes all around the country.

This is why each year billions of letters are stuffed into billions of envelopes that get mechanically hauled in postal service trucks to special sorting centers, from there off to the mail airplanes, and then into the postal trucks and finally to the local postal carriers.

The above chain of event, is suspected of being too old and totally inefficient there by creating the current cost of postage stamps.

On one hand, industry professionals ask for immediate measures to bring more efficiency in this domain which would drastically effect the cost of postage stamps.

They say there are many ways to eliminate the strain on the existing postage cost of postage stamps system, such as increasing both qualification and number of the postal workers or improving transportation technology.

The bottom line is to offer better postage services by improving the quality of the existent postage system which will result in better cost of postage stamps.

On the other hand, the costs of this system are considered too high by communication experts.

They pretend that other existing systems like email, for instance, would have greater results with smaller costs.

This is why they claim that raising the price of postage stamps will increase the cost of postage stamps, and drive customers away, causing them to get online and use the excellent web communication tools.

The declaration that summer is here still holds true today, for summer has not yet left, which is more than can be said about that lazy relative who is still on your couch (seriously, check it now). Many people have begun to have some fun this summer, either by vacationing away, vacationing at home, or by watching every television marathon that doesn't actually include people running real marathons (that'd be too ironic). Still, there are likely some who are in need of suggestions. Well, here I am to save the day, with a list of activities sure to stop your summer blues:

- In most areas, the summer implies that there will be some heat. And what better way to use that heat than to have ice races with friends! Simply go outside with a friend and at least two ice cubes of the same size. Then place your ice cubes on the ground or a flat surface and watch whose melts first. Yes, ice is exciting. Who would have thought that "fun" could be spelled with three letters?

- Nothing says summer like a talking Slip 'n' Slide. So why not... Oh never mind, if it talks, then it can tell you the rest...

- It's time to take the cover off of the grill, grab a bag of marshmallows and create your own Peeps. Yours will look nothing like the Easter variety at first, but you have a couple of months to work on it, assuming the fun doesn't overwhelm you...

- You don't need a swimming pool to swim. Simply put on your swimming clothes and wait outside on the street for an open invitation. Wearing scuba gear and goggles will increase the odds of this occurring, or -- at the very least -- will make you a greater target for water balloons, which is pretty much the same as swimming anyway...

- Do birds really need those baths set out for them? If the answer to this question is "no" -- and I am not really sure of this one -- then simply kick them out and take their spots. If anyone questions this activity, tell him/her it's a hockey game and you're playing left wing. If a hockey player asks you, tell him/her your game is for the birds, which is basically accurate, even though you kicked them out earlier...

- Lemonade stands are a hassle to create. So why not take over someone else's stand and negotiate that you will take a certain percentage of the profit, simply because you made the declaration to do so. To make this more fun, put your name on the sign and give all of your friends a free cup. If you are above the age of 30, quit your day job in order to run this business more successfully. Make sure your old high school classmates see your success. Send them e-cards if possible...

But I digress.