RENO, Nev.–(BUSINESS WIRE)–
U-Haul Holding Company (NYSE: UHAL, UHAL.B), parent of U-Haul International, Inc., Oxford Life Insurance Company, Repwest Insurance Company and Amerco Real Estate Company, on December 3, 2025 declared a quarterly cash dividend of $0.05 per share on its Series N Non-Voting Common Stock (NYSE: UHAL.B). The dividend will be payable December 30, 2025 to holders of record on December 15, 2025.
This is the thirteenth dividend issued under the Company’s dividend policy announced in October 2022.
About U-Haul Holding Company
U-Haul Holding Company is the parent company of U-Haul International, Inc., Oxford Life Insurance Company, Repwest Insurance Company and Amerco Real Estate Company. U-Haul is in the shared use business and was founded on the fundamental philosophy that the division of use and specialization of ownership is good for both U-Haul customers and the environment.
About U-Haul
Celebrating our 80th anniversary in 2025, U-Haul is the No. 1 choice of do-it-yourself movers with more than 25,000 rental locations across all 50 states and 10 Canadian provinces. The U-Haul app makes it easy for customers to use U-Haul Truck Share 24/7 to access trucks anytime through the self-dispatch and -return options on their smartphones with our patented Live Verify technology. Our customers’ patronage has enabled the U-Haul fleet to grow to approximately 203,000 trucks, 137,400 trailers and 41,700 towing devices. U-Haul is the third largest self-storage operator in North America and offers 1,111,000 rentable storage units and 96.5 million square feet of self-storage space at owned and managed facilities. U-Haul is the top retailer of propane in the U.S. and the largest installer of permanent trailer hitches in the automotive aftermarket industry. U-Haul has been recognized repeatedly as a leading “Best for Vets” employer and was recently named one of the 15 Healthiest Workplaces in America.
ATLANTA – Drivers saw rising auto insurance bills in recent years, yet the industry was not seeing gains, an advocate told state lawmakers Friday.
Companies offering commercial, health and life insurance were posting ever higher pre-tax operating gains, but not those in the auto and home insurance segments, said Robert Passmore of the American Property Casualty Insurance Association.
Data he presented to a special committee of the House of Representatives showed industry gains in that “personal” insurance segment falling below zero in mid-2021 before bending back up later that year but still in the red in 2023. Passmore blamed more aggressive, speedy and distracted driving – and more expensive repairs.
As vehicles have become more computerized, even once-simple repairs, like replacing a windshield, have become more costly, due to onboard cameras and sensors.
“The average car on the road is about 12 years old in the United States right now,” he said. “And a large part of those right now don’t have that kind of technology. So, those kinds of expenses are only going to increase.”
But people in the auto repair industry complained that insurance companies have not been covering the full cost of those repairs.
Jason Babb, owner of Babb’s Body Shop in Chatsworth, asked lawmakers to support legislation that prohibits insurers from denying claims when a shop follows the manufacturer’s repair procedures.
“It would protect consumers by ensuring that required safety inspections, scans, and calibrations are treated as standard reimbursable parts of a repair, not optional add-ons to be argued over claim by claim,” Babb said. “And it would keep all Georgia shops on a level playing field so the shops that are doing the right thing aren’t punished when compared to those who are cutting corners.”
Passmore countered that such laws in other states have driven up insurance rates, and he contended that auto manufacturers’ repair standards can be self-serving, requiring shops to use their official parts.
Two reasons for rising consumer costs may be difficult to counter because they are rooted in behavior.
A team of 35 agents at the state office of Insurance and Safety Fire has been investigating about 10,000 reports of insurance fraud a year, said Bryce Rawson, who handles legislative affairs for the agency.
“We rank third in the nation in terms of questionable claims,” he said.
Joshua Carroll, a Macon lawyer and president of the Georgia Trial Lawyers Association, said the number of wrecks has risen over the past 15 years, tracking the market saturation of smartphones.
And for some reason, Georgia has become a magnet for crashes. “We have double the amount of wrecks in Georgia of the national average,” he said. “That’s really a breathtaking statistic.” final hearing Dec. 2.
WEST CHESTER, Pa.–(BUSINESS WIRE)–
Venerable has named Alexandra Findleton Head of Flow Reinsurance, positioning the firm to accelerate growth in this new organizational capability and advancing the firm’s overall growth strategy.
Expansion of Venerable’s strategy to include variable annuity flow reinsurance was announced in June of this year as part of the landmark agreement with Corebridge Financial, Inc. (“Corebridge”) which also included reinsurance of $51bn of variable annuity business from American General Life Insurance Company and The US Life Insurance Company of New York. Venerable additionally agreed to acquire Corebridge’s investment advisor, SunAmerica Asset Management.
The expansion of Ms. Findleton’s existing role to include flow reinsurance allows Venerable to further explore this market and sets a framework for ownership, accountability, and governance in support of this portion of their business. Ms. Findleton will add responsibility for shepherding flow reinsurance transaction development, managing counterparty relationships, overseeing terms with cedents, and collaborating with internal partners on deal pricing.
“Alexandra played a pivotal role in establishing Venerable as a player in the flow reinsurance market,” said Miles Kaschalk, Head of Corporate Development at Venerable. “Her leadership, experience, vision, and ability to collaborate will be a great asset to Venerable as we look to aggressively grow in this space.”
Ms. Findleton holds a Bachelor of Mathematics in Mathematics/Financial Analysis and Risk Management from the University of Waterloo. Prior to joining Venerable in 2019, she began her career at Oliver Wyman as a management consultant where she was instrumental in developing insurance liability models and technology solutions to support annuity new business sales strategies and policy administration system conversions for various life insurance clients.
About Venerable
Venerable is a privately held company with business operations based in West Chester, Pennsylvania, Des Moines, Iowa and New York, NY. Venerable owns and manages legacy variable annuity business, including variable annuities acquired from other entities. Created by an investor group led by affiliates of Apollo Global Management, Inc., Crestview Partners, Reverence Capital Partners, and Athene Holdings, Ltd., Venerable is a business with well-established, strategic investors, experienced in successfully building and growing insurance businesses with patient, long-term capital.
CHICAGO, Dec. 2, 2025 /PRNewswire/ — Christopher L. Gandy, founder and CEO of The Legacy Wealth Group LLC, has been elected president of the National Association of Insurance and Financial Advisors for the 2026–2027 term. Headquartered in Washington, D.C., NAIFA is the oldest financial association in the United States, founded in 1890 as the National Association of Life Underwriters, to raise professional standards, advocate at the federal and state levels, build a community of professionals committed to doing things the right way and ensure the profession lasts for generations.
“Being elected to lead NAIFA is one of the greatest honors of my professional life. This association represents the heart of our industry—financial professionals who show up every day to protect families, guide businesses, and secure financial futures. My mission is to build on that legacy by championing inclusion, expanding access to financial education, and preparing the next generation of professionals to lead with integrity and purpose,” said Gandy, President, NAIFA.
With more than two decades of experience advising high-net-worth individuals and advocating for consumers and advisors nationwide, Gandy brings a powerful combination of industry insight, mission-driven leadership, and community commitment to this influential role.
A dedicated member of NAIFA since 2003, Gandy has held multiple peer-elected positions within the organization, including president-elect, board secretary, and board trustee. He will formally assume the presidency in January 2026, helping steer the association’s national strategy, legislative advocacy, and professional development initiatives that support financial advisors across the country.
Gandy’s career reflects a deep, sustained focus on ethical leadership, expanding financial literacy, and strengthening advisor communities. From building a boutique concierge financial firm to championing industry-wide policy priorities on Capitol Hill, he continues to shape the future of the profession and elevate the impact of advisors serving Main Street families.
During Gandy’s 2026 presidency, he remains focused on strengthening NAIFA’s role as the premier voice for financial advisors, expanding leadership development pathways, and amplifying the association’s advocacy work to protect consumer access to ethical, client-centered financial professionals.
Gandy graduated with a Bachelor of Arts in Speech Communication from University of Illinois Urbana-Champaign in 1997.
“The University of Illinois shaped me as a financial professional by helping develop the foundation of who I am—not only as an athlete or a lifelong learner, but as a leader,” said Gandy.
About Christopher L. Gandy
Christopher L. Gandy is the Founder and CEO of The Legacy Wealth Group LLC, a boutique insurance and financial planning firm based in Chicago. A former professional basketball player for the Chicago Bulls, San Antonio Spurs, and teams in France, Gandy transitioned into financial services in 1999 and has since become a nationally recognized leader in wealth strategy, insurance planning, retirement solutions, and advisor advocacy. Prior to his current role as President, his NAIFA leadership included roles as President-Elect, Board Secretary, National Trustee, Strategic Planning Committee Member, and recipient of the NAIFA Diversity Champion Award. Gandy is also active in community leadership, supporting financial literacy initiatives, The Urban League, the Chicago Concussion Coalition, and mentorship programs nationwide.
Several companies are competing to take over or reinsure all or parts of the troubled PHL Variable Insurance Co. business, and the Connecticut Department of Insurance said it will decide which proposal to pursue by the end of 2025.
Five companies submitted proposals of interest: three whole company proposals and two partial company bids. In addition, one party not previously engaged submitted an initial indication of interest proposing a whole company transaction, said Insurance Commissioner Andrew Mais in his Nov. 20 status report filed with the Connecticut Superior Court.
Earlier this year, Mais announced the effort to sell all or parts of the PHL Variable business. The sales effort is a crucial part of a delayed overall rehabilitation plan for PHL Variable. In the Nov. 20 status report, Mais said the rehabilitator also “expects to file an outline of the terms of a rehabilitation plan” by the end of the year.
It is unclear whether Mais’s departure will impact the rehabilitation plan timeline. A request from InsuranceNewsNet for clarification did not receive a response from CID in time for deadline.
The troubled PHL and its subsidiaries, Concord Re and Palisado Re, were put in Mais’s control after a May 20, 2024, court order.
Lawsuit on the table
The status update provided several other newsworthy notes on the PHL rehab effort. Efforts continue to recoup losses to third parties, Mais wrote, without further elaborating on the nature of those losses or the types of third parties involved.
“If an acceptable resolution that would be in the best interests of policyholders cannot be achieved, the Rehabilitator intends to file a lawsuit against such parties,” the status update said.
Otherwise, PHL’s Investment Committee continues to explore scuttling some of the companies’ “more complex, structured, and riskier assets, including alternative assets, collateralized loan obligations, asset-backed securities, commercial mortgage-backed securities and other real estate-backed assets.”
That is part of an ongoing effort to reposition the PHL companies’ portfolio into “cash, short-term investments and high-quality, short-duration bonds,” Mais wrote.
The PHL companies’ cash, cash equivalents, and short-term investments increased from $170 million on Dec. 31, 2024, to $437.5 million as of Sept. 30, 2025 (including $89.9 million in reinsurer-specific segregated accounts), the status report said.
As part of his rehabilitation effort, Mais introduced the moratorium on benefits payments until a Connecticut court approves a final plan. Rehabilitators allowed for “hardship” appeals and Mais provided an update on those results as well.
As of Nov. 12, roughly 460 applications were received under the hardship program. About 185 of those applications received deficiency notices requiring the submission of further information; 83 were resolved, 101 are awaiting supplemental documentation from the applicant and one is under review by the hardship committee.
Mais authorized 310 payments totaling approximately $8.8 million. There were 28 denials and 11 appeals. Thirteen of the denials were “technical denials,” or instances in which applicants were seeking benefits that were already being paid or were not available under the policy even in the absence of the moratorium, the status report said.
Three of the appeals resulted in a hardship payment; three are pending receipt of additional information from the applicant; and one is currently pending review by the hardship committee.
PHL Variable surrenders stabilized
Mais noted that surrenders stabilized during the first nine months of 2025. Surrenders and withdrawals were a concern throughout 2024, with rehabilitators recording $401.1 million worth during the year.
Total surrenders and withdrawals amounted to $130.3 million through the end of the third quarter 2025, Mais reported. Nearly half of the surrender and withdrawal activity related to variable annuity products, with another 37% relating to recurring annuity payments and distributions under fixed indexed annuity products permitted under the moratorium, he noted.
Regulators and policyholders await a decision by Judge Daniel J. Klau on a proposed modification of the moratorium on access to PHL Variable benefits. The rehabilitator received 66 informal comments and 26 formal comments on the proposed modifications, Mais reported.
Mais previously explained how policyholders can access more of their benefits. Universal life policyholders have two options under the moratorium modification:
Reduction in the face amount of death benefits with downward premium adjustment prospectively.
Convert policy to a claim for a fixed amount (to be determined based on adjusted surrender value) with no ongoing premium obligation.
The modification is expected to offer fixed indexed annuity owners who have not activated their income rider or are currently receiving systematic withdrawals two alternatives:
Activate the income rider (to the extent available under the contract).
Receive a one-time surrender-charge free distribution of the “Free Withdrawal Amount” under the contract (typically this is approximately 10% of the contract’s account value).
NEW YORK–(BUSINESS WIRE)–
MetLife, Inc. (NYSE: MET) today announced it has completed its previously announced $10 billion variable annuity risk transfer transaction with Talcott Resolution Life Insurance Company (Talcott), a life insurance and annuities subsidiary of Talcott Financial Group. Expected foregone annual adjusted earnings total of approximately $100 million will be partially offset by annual hedge cost savings of approximately $45 million.
The transaction reduces portfolio risk, accelerates the run-off of MetLife’s legacy blocks of business and represents the latest example of MetLife’s disciplined execution of risk transfer options within MetLife Holdings, the closed-block businesses of the company’s former U.S. Retail segment. MetLife Investment Management will manage approximately $6 billion of assets under investment management agreements with Talcott.
Forward-Looking Statements
This news release may contain or incorporate by reference information that includes or is based upon forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give expectations or forecasts of future events and do not relate strictly to historical or current facts. They use words and terms such as “anticipate,” “are confident,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “if,” “intend,” “likely,” “may,” “plan,” “potential,” “project,” “should,” “target,” “will,” “would,” and other words and terms of similar meaning or that are otherwise tied to future periods or future performance, in each case in all derivative forms. They include statements relating to strategy, goals and expectations concerning our market position, future operations, margins, profitability, capital expenditures, liquidity and capital resources and other financial and operating information. By their nature, forward-looking statements: speak only as of the date they are made; are not statements of historical fact or guarantees of future performance; and are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that management’s expectations, beliefs and projections will result or be achieved and actual results may vary materially from what is expressed in or indicated by the forward-looking statements.
Many factors determine the results of MetLife, Inc., its subsidiaries and affiliates, and they involve unpredictable risks and uncertainties. Our forward-looking statements depend on our assumptions, our expectations, and our understanding of the economic environment, but they may be inaccurate and may change. MetLife, Inc. does not guarantee any future performance. Our results could differ materially from those MetLife, Inc. expresses or implies in forward-looking statements. The risks, uncertainties and other factors identified in MetLife, Inc.’s filings with the U.S. Securities and Exchange Commission, and others, may cause such differences.
MetLife, Inc. does not undertake any obligation to publicly correct or update any forward-looking statement if MetLife, Inc. later becomes aware that such statement is not likely to be achieved. Please consult any further disclosures MetLife, Inc. makes on related subjects in subsequent reports to the U.S. Securities and Exchange Commission.
About MetLife
MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates (“MetLife”), is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management to help individual and institutional customers build a more confident future. Founded in 1868, MetLife has operations in more than 40 markets globally and holds leading positions in the United States, Asia, Latin America, Europe and the Middle East. For more information, visit www.metlife.com.
Indexed universal life has always been a bit of a lightning rod for controversy. Advocates suggest IUL has high upside potential with downside protection, while naysayers suggest the product is complicated and that poor market returns in the future will be a major challenge for policyholders.
Sam Rocke
It is true that future market returns are relevant to how these policies perform, but the bigger issue is the caps on the upside, which are typically set by the insurance carrier. How the carrier manages cap rates in the long term is often far more impactful to a policyholder’s overall experience than what type of market cycle they experience. To that end, advisors and agencies should be focused on recommending carriers with historically stable cap rates who have a strong emphasis on providing consistent value in the future.
How is the IUL cap so impactful?
Assume a policy started with a 0% floor and 12% cap tracking the S&P 500 point-to-point index. Over time, the cap on this policy slowly eroded to 8%. To quantify the impact of the reduction in cap, take the average return of all 20-year periods in the index from 1950-2024, see reference chart and table. The best 20-year period of returns for a 0% floor and 8% cap is less credited interest than the worst 20-year period for the same index with a 12% cap. For this policyholder, assuming all else is equal, the next 10-20 years of the policy’s life cycle will be driven far more by the reduction in their cap than the performance of the index.
Using the same data set but looking at it differently, the difference between the worst return and the average return on a product with a 10% cap is 0.82%. The difference between the average return with a 10% cap versus an 8% cap is 1.08%. The conclusion to draw here is that a bad market may cost the policy holder with a 10% cap 0.82% in interest earned, but a reduction in cap from 10% down to 8% cost the policy holder 1.08% in the average scenario. Granted, there is a sensitivity here to varying degrees of cap reductions (and good versus poor markets), but the main issue here is that the cap rate is a vitally important variable with most any IUL and one that, unlike market returns, is controlled by the insurance company.
Why does this phenomenon exist?
It’s pretty simple. Historically, with a 0% floor and 10% cap during the time period in this analysis, the S&P 500 would have hit the floor or the cap 61 out of the 75 years. The cap would have been hit 41 times, or more than 50% of the years. In other words, an IUL will hit the floor or cap more than 80% of the time. Since floors are typically guaranteed, cap rates are the critical determinant.
Where to go from here?
The point of this exercise is not to minimize actual market outcomes (yes, that is important), nor is it to suggest that advisors should simply chase the highest caps. Additionally, there is a lot to be said here for sequence of returns and the impact to policy expenses, which is a subject for another article. Rather, all those involved in the value chain of insurance (carriers, agencies, and advisors) should put a premium on stability and fairness in how policy holders are treated in the long term, not just at policy issue.
The life insurance industry continues to provide immense value to families, businesses, and charities. In total, estimated benefits and claims for the life insurance industry was estimated to be more than $965 billion in 2024. Life insurance will continue to be a valuable planning tool for Americans and it’s important that the industry provides this exceptional value in terms of benefits paid while focusing on stewardship of policyholders.
Once upon a time, a life insurance policy was seen as a static promise, a simple transfer of risk upon death. But now, clients face risks that demand not only a death benefit, but also a financial tool designed to weather market volatility, health crises and the costs of longevity.
Jay Scheiner
In the indexed universal life space, the policy rider is the essential key to unlocking this dynamic utility. Riders are more than mere add-ons; they are contractual enhancements that elevate the IUL policy from a simple risk management tool to a customizable, multifaceted wealth and health planning instrument.
Riders are no longer optional features but essential mechanical systems that ensure the contract functions perfectly across a client’s entire lifespan. Our mastery of these enhancements dictates our ability to solve today’s most complex planning challenges.
The market certainly agrees with the emphasis on IUL, as IUL has firmly cemented its place as a core planning tool. Data from LIMRA shows that IUL new premiums totaled a record-high $3.8 billion in 2024, representing about 24% of the total U.S. individual life insurance market premium. This sustained growth demonstrates the client demand for products that offer both death benefit protection and the potential to accumulate cash value.
The power of living benefits
The most compelling riders deliver liquidity precisely when financial stress is highest. These living benefits address the risks of longevity and health crises, effectively bridging the policy’s value with the client’s immediate, critical needs.
Accelerated benefits: The crisis firewall
The most common failure in a client’s financial plan occurs when a sudden catastrophic illness forces them to liquidate retirement assets to cover expenses. Accelerated death benefit riders covering terminal, chronic and critical illness, are the client’s emergency liquidity line. They fundamentally change the policy’s purpose from merely paying a future liability to solving a present crisis.
In my practice, the ADB rider prevents the forced liquidation of other, more sacred assets—such as a client’s 401(k) or nonqualified brokerage accounts—to cover catastrophic medical costs. This is critical to maintaining the client’s broader retirement and legacy plans.
From a planning perspective, these payments often receive favorable tax treatment. Funds received under these riders for terminal or chronic illness are generally treated as an amount paid by reason of death, which is typically excluded from gross income under IRC Section 101(g) of the Internal Revenue Code 26 U.S. Code § 101 – Certain death benefits – Cornell Law School LII. This tax efficiency elevates their value far above that of alternatives such as personal loans or asset sales.
Long-term care riders: Addressing longevity risk
The rising cost of extended care is arguably the most significant financial blind spot for many middle- and upper-market clients. I often present the long-term care rider (or linked benefit riders) as the most elegant hedge against this risk, offering a superior alternative to self-insuring.
LTC riders, particularly in the hybrid structure, are the elegant solution. They provide a leveraged, contractual payment stream for care expenses, eliminating the risk of total financial depletion while ensuring that if care is never needed, the full death benefit still passes to the beneficiaries. It’s a dual-purpose asset that solves the core risk of living too long and depleting capital.
Living benefits capture the headlines, but structural riders are silent workhorses that ensure the policy stays sound and performs as illustrated. If a client’s income stops, the policy integrity is immediately compromised. The following riders are the essential safety features that protect the policy’s long-term structure.
The waiver of premium rider: Securing the policy
For IUL, the waiver of premium rider is arguably non-negotiable. If the insured suffers a long-term disability, the WOP rider steps in, allowing the carrier to pay the planned premium. This simple action is crucial because it does three things:
Prevents lapse. The policy stays in force.
Protects cash value. The cost of insurance charges doesn’t erode the accumulation.
Preserves growth. The cash value continues to participate in the indexed crediting, keeping the policy on track with the original illustration.
In essence, the WOP rider safeguards the entire financial contract, securing the death benefit and protecting the policy’s tax-advantaged growth from the single greatest threat to human capital: the cessation of income.
Guaranteed insurability rider: Future-proofing the contract
A young client’s need for coverage almost always grows with their income, assets and family. The guaranteed insurability rider allows us to be proactive.
The GIR permits the policy owner to purchase specified amounts of additional death benefit at predetermined intervals (e.g., ages 25, 30, 35) or life events (e.g., marriage, birth of a child)—without providing further evidence of insurability. This is critical for young or rapidly successful clients. We lock in their health class today, guaranteeing their capacity to meet greater future needs even if their health deteriorates.
From product seller to policy architect
The modern client wants to buy more than a death benefit; they want to invest in a custom-engineered solution to manage complex wealth, health and longevity risks. And the key to personalized solutions is the correct blend of riders to ensure dynamic protection.
Balance the rider’s cost against its utility, ensuring the expense doesn’t unduly dilute the policy’s internal rate of return or cash value performance. Be sure to provide comprehensive disclosure, ensuring the client grasps the exact contractual definitions and triggers for every living benefit.
Embrace your role as policy architects to serve our clients best moving forward.
Recently, you wrote an article explaining hospice. Please let Toni Says Medicare column readers know that there are other ways hospice comforts the caregiver when a loved one passes. My mother’s hospice case manager and also her social worker made sure that I knew exactly what to do for her final needs when she finally peacefully passed away.
Going through a well-known funeral home in my area, I would have had to pay over $3,000 for cremation plus $7,000 to bury my mother’s urn on top of my father’s casket. To my amazement, I only had to pay a pre-approved price of $995 with a funeral facility that was on this specific hospice company’s approved funeral home list. My mother passed away with no life insurance and our family had to pay for all of the funeral cost out of pocket.
I have turned 65, am retired with high blood pressure and do not have a life insurance policy for my end-of-life issues. I do not want my adult kids to experience what I did when my mother passed away. Please explain which life policy I should consider. Thanks, Toni, looking forward to your answer.
–Eva from Boston, Mass.
Hello Eva:
I would be honored to help you explore your life insurance options after what you have experienced with your mother. Many Americans wait too long to buy a life policy. They do not realize how their health situations can affect applying for an insurance plan and cannot qualify due to their health issues.
Eva, a life insurance policy, can help cover your end-of-life costs and this plan will help to give peace of mind knowing there will not be a financial strain caused by unforeseen debt that the family may be responsible for paying.
Let’s explore the different life insurance plans available for those age 65 and older and whether health underwriting may be required for you to be accepted and qualify for a lower premium:
Eva, with a variety of life insurance and final expense plans to meet health and financial needs of those past 65, it is important to take time exploring which way is right for you and your family.
America is accustomed to a certain type of insurance health underwriting while working, and for those who are new to Medicare this underwriting process can be an eye-opening experience. Please take your time when retiring and applying for past-65 life insurance plans.
Remember, with Medicare and Life Insurance plans, it’s what you don’t know that WILL hurt you! Have a Medicare, Social Security, or Life Insurance question, email info@tonisays.com or call 832-519-8664. Sign up for the Toni Says newsletter at www.tonisays.com to keep up to date on Medicare changes.
One of the biggest mistakes people make is naming minor children as beneficiaries on accounts and policies. The thought is “I’ll avoid probate court because I have beneficiaries named and they’ll get the money directly.” This is only partly true. That money will avoid probate court on the FRONT end, not the BACK end. Why is that?
Minor children are legally unable to contract or to manage money. Because of this, financial institutions often require probate courts to appoint a conservator to control the funds left behind for a child until the child reaches the age of majority. This can cause delays, increased fees and court control over how the money is used. This applies no matter who the child’s surviving relatives are, even if it is their own parent.
Let’s take Jill, for example, who is a 34-year-old single mother with an 8-year-old daughter and 6-year-old son.
She works as a nurse with one of the big health systems. She has a whole life insurance policy through work with a $100,000 death benefit and a separate term policy that has a $1,500,000 death benefit. She also has a 401(k) plan. She has named her two children as beneficiaries on all these accounts because, after all, she is leaving everything for them.
Jill works 12-hour shifts, rips and runs with the children’s activities, and helps care for her ailing paternal grandmother, who lives with her. She has not been feeling the best lately, but she pushes through and vows to make an appointment with her primary care doctor soon.
One day, Jill unexpectedly experiences a ruptured aneurysm and passes away.
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Obviously, her family is shocked and devastated by the loss. Her mother Renita takes in the children and begins to go through Jill’s paperwork. She is relieved when she sees that the children are named as beneficiaries— that is until she calls the financial institutions and is informed that they require the court appointment of a conservator to release the funds. She cannot understand why a court must get involved when she is the children’s grandmother and they are in her care!
Renita must go through probate court proceedings. Assuming she is appointed by the court as conservator, the funds will likely have to be placed in a restricted account, and she will have to get court approval to make expenditures for the benefit of the children— until they reach age 18. Annual reports and supporting documentation are required.
This is the type of nightmare that proper planning can avoid. The best option if there is a minor beneficiary – whether this is a child, grandchild, niece, nephew, cousin or godchild – is to set up a Trust.
The Trust will dictate who manages the money for the children and how it is to be spent— all without court involvement.
Alternatively, there are Michigan Uniform Transfer to Minors Act (UTMA) accounts that may be appropriate for smaller accounts and policies. The Michigan Uniform Transfer to Minors Act allows a person to transfer property, such as bank accounts, securities, life insurance policies, etc. to a minor to be held for the benefit of that minor until that individual reaches the age of 18 and in some cases, up to the age of 21.
These accounts or may or not be appropriate depending on the type of asset and the value. The important takeaway is that you have options to avoid probate court entirely. Contact an experienced estate planning attorney today!
Attorney Jehan Crump-Gibson is the Co-Founder and Managing Partner at Great Lakes Legal Group PLLC, where she concentrates her practice in probate and estate planning, business and real estate matters. Great Lakes Legal Group is a growing black-owned law firm serving clients throughout the state of Michigan and in federal courts across the country. Jehan has served as Faculty for the National Business Institute and the Institute of Continuing Legal Education concerning business, probate and estate planning matters. She is a legal analyst with Fox2 Detroit’s The Noon and the author of the book A Matter of Life and Death.
