KENTUCKY (9/30/12) - This week Dave will be discussing picking the right trustee and Dave’s thoughts about online banks.
 
Dear Dave,

I’m going through a divorce, and I’m about to buy a $600,000 life insurance policy. My 9-year-old daughter would be the beneficiary. I need a trustee, but how do I pick a good one? - Marie

Dear Marie,
First, your daughter wouldn’t be the beneficiary. You would leave it in a trust for her benefit. And I’m not sure I’d depend on an ex-husband to handle something that requires this much integrity. You’d be better off hiring a good attorney to execute the trust upon your death, or you can look for a bank that has a trust department.

Once you decide on a trustee, you must remember to clearly and specifically state what you want done with the money. Don’t say to invest the money appropriately, because what a banker views as an appropriate investment and what I view as an appropriate invest are usually very different. A banker might put the money in CDs, or certificates of deposit, while I’d probably look at something like mutual funds, which have a much better rate of return.

In many cases, a trust for a child is put in place to pay for their first car, a medical situation or their college education, but this is completely up to you. The balance of the money might go to them when they reach age 21, while they receive a monthly stipend for food and other essentials while they’re younger.

I’m proud of you for thinking ahead, Marie. I know divorce is hard, but your little girl is lucky to have such a good and caring mom on her side! - Dave
 
Dear Dave,
How do you feel about using an online bank for your emergency fund? - Jared

Dear Jared,
I don’t think that’s a problem at all in most situations. Just make sure you do a little research. Know who you’re dealing with and that they’ve got some strength. A bank that is known as a “click and mortar”—one that has a physical location as well as online—would be my preference. Some of them have great debit card programs that includes debit card rewards and high-interest checking accounts, too.

When it comes to an emergency fund, I like the idea of keeping it in a separate money market account. That way you get money market rates, plus you can attach check writing privileges to the account. Then when an emergency comes along, you don’t have to worry about shuffling money around. You can just write a check out of the account. Problem solved! - Dave

* Dave Ramsey is America’s trusted voice on money and business. He’s authored four New York Times best-selling books: Financial Peace, More Than Enough, The Total Money Makeover and EntreLeadership. The Dave Ramsey Show is heard by more than 5 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at www.daveramsey.com.
 
 
Disclaimer: The content supplied by columnists and letters to the Editor on this site does not in any way, shape or form, implied or otherwise, necessarily express or suggest endorsement or support of any of such content, statement, or opinions therein. SurfKY News does not necessarily adhere to or endorse content provided by outside non-staff sources.

e-max.it: your social media marketing partner

LIKE SurfKY on Facebook - Click here to LIKE us now.

© Copyright 2015 SurfKY News Group, Inc. All rights reserved. This material may not be published, broadcast, or rewritten without permission. SurfKY News encourages you to share this story on social media.

Posted on 2/2/14
3/13 - 16
3/13 - 16

Most Read This Week

July 02, 2015 15374

Emergency Response Team on Scene of Standoff on…

by Doreen Dennis, SurfKY News
July 02, 2015 7948

Police: Stand Off Suspect in Critical Condition

by Doreen Dennis, SurfKY News
July 03, 2015 3956

KMA Reminds Motorists of New Kentucky Red Light…

by David Holt
July 01, 2015 3486

Police Seeking Public Help in Locating Subject…

by SurfKY News
July 01, 2015 3327

Crime Stoppers Top Most Wanted - July 2, 2015

by Crime Stoppers

Most Read This Month

June 24, 2015 45835

Western Kentucky, Southern Indiana's Largest…

by Doreen Dennis, SurfKY News
July 02, 2015 15374

Emergency Response Team on Scene of Standoff on…

by Doreen Dennis, SurfKY News

Stories Trending Now

July 06, 2015 2167

Man Accused of Choking Girlfriend, Threatening to…

by SurfKY News
July 05, 2015 1706

Hopkins County Traffic Advisory

by Keith Todd
July 06, 2015 976

Madisonville Police Arrest Reports Released -…

by SurfKY News
July 06, 2015 943

Driving on Suspended License, Alleged Fleeing…

by SurfKY News
July 06, 2015 625

KLC to Hold Free OSHA Training for West Kentucky

by Daniel Lowry
July 06, 2015 531

Two Vehicle Head on Collision Sends Two to Local…

by SurfKY News
July 06, 2015 463

City Launches New Website, Online Payment System

by Leslie Curneal
July 06, 2015 435

Kentuckians Touched by Organ Donation Featured on…

by Karen McKnight
July 06, 2015 432

Swingin' for Sadie Scholarship Recipients

by Karen Robinson
July 06, 2015 381

Pet of the Day

by Natalie Ostrander