Death Benefit protection of your Estate
With some Trustees, you will be able to use your Trust also as a form of life insurance. The principle is that the Trustee, as part of the agreement with you about how to manage the Trust, will set aside funds to join an insurance policy that will become payable in cash to your Trust when you die.The amounts of such an insurance will typically be decreasing with your age, like most life insurances. The payments, however, could represent a significant additional value to your heir(s), particularly if you were to end this life in a fairly young age, and unexpectedly. You don't need this extra protection yourself, but it can have some significant value for your Estate, so if your are establishing your Offshore Trust with the purpose in mind of also protecting your Estate, your should make sure you get such an insurance added. Although there will be no ownership change of your Trust when you die, your sudden disappearance can be traumatic enough for your loved ones - you don't want to add any financial stress to the grief...
You should not have to pay much extra for
getting a reasonable Death Benefit, but you might have to
accept maintaining some specified minimum balances on your
Trust accounts in order to be eligible. The amount will
depend a lot of the size of the payments.