Kristin Alley
Kristin Alley of Vinalhaven has joined Allen Insurance and Financial as an account manager in the company’s business insurance division.
A Vinalhaven native, Kristin brings 10 years’ experience as a licensed Maine insurance agent, along with administrative and client relations experience at both a medical clinic and an eldercare facility in Vinalhaven. She is a graduate of the University of Maine in Machias, where she studied business and accounting.
Nick Pucello, a business and marine insurance producer at Allen Insurance and Financial, has successfully completed the Liberty Mutual Business Lines Producer Development Program – a rigorous 10-week course designed to sharpen technical knowledge, strengthen sales expertise and enhance the ability to navigate the complexities of today’s insurance marketplace.
Nick joined Allen in January 2025 and has quickly demonstrated a strong commitment to professional development.
“Nick’s dedication to completing this intensive program reflects both his work ethic and his focus on building a strong foundation for long-term success in our industry,” said Dan Bookham, Allen’s senior vice president for business development and commercial lines. “All of us at Allen are proud of this important step forward in his career.”
Allen Insurance and Financial is an employee-owned insurance, employee benefits, and financial services company with offices in Rockland, Camden, Belfast, Southwest Harbor and Waterville. For more information call 236-4311, or visit AllenIF.com
If you have young children, grandchildren, or other little ones in your life who are dear to you, you might consider including them in your estate plan. One component of that estate plan may include naming them as a beneficiary on your financial accounts, insurance policies, or other assets via a will. While leaving assets to minors may seem like a simple solution, it can lead to unintended complications. In this article, we’ll explore the challenges minors face when inheriting assets and provide practical strategies to help ensure that your wishes are carried out smoothly.
What Challenges Do Minors Face as Direct Beneficiaries?
Minors legally cannot own or manage significant funds or property without a custodian. Here are the potential challenges when leaving assets directly to a minor:
How Can You Establish a Trust to Protect a Minor’s Inheritance?
A trust is often the most flexible and effective way to ensure that your child’s inheritance is distributed according to your wishes. However, it is also often the most expensive. Here are some of the features of a trust:
When Might Custodial Accounts Be Appropriate?
If you’re looking for a simpler option, custodial accounts under the Uniform Transfers to Minors Act (UTMA) or the Uniform Gifts to Minors Act (UGMA) might be a good choice. These accounts allow you to transfer assets to a minor while appointing an adult custodian to manage them until the child reaches the age of majority (usually 18 or 21, depending on the state) via a beneficiary designation.
Key features of custodial accounts:
Why Is Choosing the Right Trustee or Custodian Critical?
Whether you choose a trust or a custodial account, selecting the right person to manage the funds is essential. This person will be in charge of handling the money and making decisions, so they must be financially responsible, trustworthy, and likely to outlive you. It’s also a good idea to name a backup trustee or custodian in case your primary choice is unable or unwilling to take on the responsibility.
For larger sums or more complex situations, you might want to consider naming a professional trustee, such as a financial institution or estate planning expert, to ensure that the trust is managed according to your wishes. Speak with your financial advisor to determine if a professional trustee is the best option for you.
What Circumstantial and Tax Implications Should You Consider?
Leaving money or property to a minor can have tax implications that should be considered. One important factor is the kiddie tax, which applies to any unearned income (such as investment earnings) a child receives. If the amount exceeds a certain threshold, it will be taxed at the parent’s rate instead of the child’s, which could lead to a higher tax burden. Also, trusts are often taxed at higher rates than individuals, so if you set one up, it may quickly reach the highest tax bracket, even if the income is relatively low.
Additionally, retirement assets left to minors could affect their eligibility for student aid, and naming special needs beneficiaries could affect their government benefits. Always consult with your financial advisor and a tax professional to structure the inheritance in a way that minimizes tax consequences and aligns with your overall financial goals.
Have You Considered 529 Plans for Education-Specific Inheritance?
For those who want to leave funds specifically for a child’s education, a 529 college savings plan can be an excellent option. These state-sponsored accounts provide tax advantages when funds are used for qualified education expenses. The benefits include:
Some estate planners recommend using a 529 plan alongside other inheritance tools, such as trusts, to create a comprehensive financial plan.
While naming a minor as a beneficiary is a thoughtful gesture, it requires careful planning to ensure that your assets are used responsibly and in the best interests of your child or grandchild. Consulting with an estate planning attorney, tax professional, and your financial advisor is key to creating a plan that aligns with your goals, minimizes tax implications, and helps avoid unnecessary complications in the future. By taking proactive steps today, you can ensure that your loved ones are supported when they need it most.
The fees, expenses, and features of 529 plans can vary from state to state. 529 plans involve investment risk, including the possible loss of funds. There is no guarantee that an education-funding goal will be met. In order to be federally tax free, earnings must be used to pay for qualified education expenses. The earnings portion of a nonqualified withdrawal will be subject to ordinary income tax at the recipient’s marginal rate and subject to a 10 percent penalty. By investing in a plan outside your state of residence, you may lose any state tax benefits. 529 plans are subject to enrollment, maintenance, and administration/management fees and expenses.
This material has been provided for general informational purposes only and does not constitute tax, legal, or investment advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a qualified professional regarding your situation. Commonwealth Financial Network does not provide tax or legal advice.
© 2025 Commonwealth Financial Network®
As the potential for biosimilars continues to grow, it’s important for employers to consider how these drug alternatives may impact health care plans, coverage, and formularies. We are sharing an article,”Biosimilar Market Trends,” exploring key developments in 2025 and provides insights into what employers can expect this year and beyond. We encourage you to review this content for valuable information on navigating these changes. Click here to read the article.
Thanks to the support of the community, Allen Insurance and Financial has officially awarded a $10,000 donation to AIO Food & Energy Assistance (AIO), a nonprofit organization that provides low barrier access to food, energy, and diaper assistance with compassion and respect to households across Knox County, Maine.
AIO plays a vital role in the community, assisting over 10% of Knox County residents in Maine. Each week, more than 450 families rely on the AIO food market, while 750 students benefit from the weekend meals program. In 2024, AIO provided 526 energy assistance gifts, easing the burden for households so they don’t need to decide between “heating or eating”. The $10,000 donation would provide food for 450 families coming to the AIO market, Weekend Meals for 750 students, diapers for 35 families, and energy payments for approximately 15 households.
“Helping to make our community a better place has always been important to our team, and AIO has given us a way to make a real difference,” said Jill Lang, marketing director at Allen Insurance and Financial, in a news release. “We are grateful to Liberty Mutual and Safeco for providing much-needed funds to continue their impactful work and thrilled at the opportunity to double the donation just by calling on the community to show their support.”
Allen Insurance and Financial has supported AIO for years through volunteer efforts, fundraising campaigns and community outreach. Since 2020, the Allen team has mobilized volunteers and provided significant sponsorship each year. In 2025 alone, AIO, with the support of Allen Insurance and Financial and others in the community, has collected nearly 2,400 pounds of food and raised $39,000 in donations—enough to sustain AIO’s essential programs through the harsh winter months .
“Recognizing independent agents’ dedication to their communities and nonprofit partners is what the Make More Happen Awards are all about,” said Stephanie Davis, Safeco Insurance Senior Territory Manager. “Allen Insurance and Financial is an outstanding example of how agencies can make a real difference, and we hope sharing their story inspires others to give back as well.”
Throughout 2025, Liberty Mutual and Safeco Insurance will select up to 36 independent agencies nationwide for a Make More Happen Award, donating up to $360,000 to nonprofits they support. Agencies become eligible for the award by submitting applications showcasing their commitment to a specific cause.
For more information, visit www.agentgiving.com.
By Chris Richmond
For WorkBoat Magazine
Passenger vessel operators have many options for risk management. While much of this focuses on board the vessel, one often overlooked area is before passengers even board. By adding terms and conditions to your ticket sales, you can add another layer of protection.
Including terms at the time of purchase can help:
Passenger injury. You may not be able to have all liability waived, and you will still need to comply with maritime law, but by informing your passengers that by purchasing a passage ticket they accept and understand that travel at sea can be potentially dangerous.
Time limits and specifying legal jurisdiction. Being able to manage potential litigation can minimize legal expenses as well as the inconvenience of fighting a lawsuit long distance. You will be thankful you have established this should a passenger who cruised with you in Boothbay, Maine file a claim in their hometown court in Houston, Texas.
Refund policy. You can control many things on your boat but you cannot control the weather. Include a force majeure clause detailing situations where you are not liable for cancellations due to events outside of your control which result in delay or cancellation.
It goes without saying that you should consult a professional when preparing this language. An admiralty attorney would be able to draft this document to suit the type of trip that you are doing and to make sure that you are abiding by the state and federal laws applicable for your location.
Risk management comes in many different forms. Proper terms and conditions on your boarding pass can be just as important as the life jackets that you keep on board.
In today’s digital age, artificial intelligence (AI) has transformed how we shop, communicate, and manage our finances. From budgeting apps to automated bill payment systems that track spending patterns, AI tools provide convenient ways to monitor and organize your financial life. They’re available 24/7, typically cost less than human services, and can process vast amounts of data in seconds.
With all these benefits, you might wonder: Do I still need a financial advisor? The answer is a resounding yes. While AI brings impressive capabilities to financial services and can certainly supplement your financial strategy, it falls significantly short of replacing the comprehensive value a human advisor provides. Here’s why the human touch remains essential in financial planning.
Human Understanding and Emotional Insight
AI excels at analyzing numbers and identifying patterns, but financial decisions aren’t just about the math—they’re deeply personal, tied to your life goals and values.
An AI-enhanced tool may calculate the maximum amount to contribute to a retirement plan or education funding, basing the figure purely on numbers. Still, it won’t understand the deeper emotional significance—the pride in helping family, the desire to leave a meaningful legacy, or how their own experiences with financial hardship affect what they consider “enough” for retirement security. These emotional dimensions require the human understanding a financial advisor provides.
Human advisors bring emotional intelligence to the table. They can help you process the complex emotions that often come with money decisions—whether it’s the anxiety of market volatility or the excitement of buying a home. Unlike AI, a human advisor can recognize when the “rational” financial choice isn’t the right one for you emotionally and help you balance both.
Regulatory Knowledge and Technical Expertise
Financial advisors stay current on the ever-changing landscape of tax laws, retirement rules, and financial regulations—areas where AI might lag unless specifically updated.
When tax laws change (as they often do), your advisor will understand how these changes affect your specific situation and can adjust your strategy accordingly. They can tell you when it makes sense to harvest tax losses, which retirement accounts to draw from first, or how new regulations might affect your estate plan.
This specialized knowledge becomes particularly valuable during major life transitions. When you’re navigating a career change, inheritance, or retirement, your advisor can bring technical knowledge and contextual understanding that automated systems simply can’t match.
Complex Family Dynamics
Financial planning often extends beyond individual goals—it could involve navigating complex family relationships and financial legacies.
Issues like inheritance planning, supporting aging parents, or managing family business assets require sensitive conversations and thoughtful solutions. Dividing an estate fairly among siblings or deciding how to support a child with different financial needs involves more than just math—it requires emotional insight and negotiation skills that AI lacks.
An advisor who knows your family history and financial dynamics can offer tailored advice that AI can’t replicate. They can help prevent family conflicts over money and create plans that honor both financial efficiency and family harmony.
Behavioral Coaching and Accountability
Money decisions aren’t just logical—they’re psychological. Fear, greed, and overconfidence can cloud judgment, even when the data points one way.
A good financial advisor acts as a coach, helping you manage emotional reactions and stay focused on long-term goals. AI might send automated “stay-the-course” messages, but it can’t replicate the impact of a trusted advisor reminding you of your objective-driven strategy and reassuring you during uncertain times. Your advisor knows your financial history and can remind you of how you’ve weathered previous market downturns when panic starts to set in.
Data Privacy and Security
AI tools that handle sensitive financial information are potential targets for hacking and data breaches. While human advisors are also vulnerable to cyberthreats, they provide added layers of protection, such as secure communication channels and strict confidentiality protocols.
Additionally, when you work with a human advisor, you know exactly who has access to your financial information. With AI platforms, especially free ones, your data might be shared with third parties or used for purposes beyond your immediate financial needs.
Real-Time Adaptation and Strategic Insight
AI relies on historical data to make decisions, but it can’t fully anticipate unprecedented events or shifting market conditions.
During a market crash, AI might recommend selling assets to minimize short-term losses because that’s what the algorithm suggests. A human advisor, however, can step in, remind you of your long-term goals, and help you stay the course—potentially avoiding costly decisions driven by panic.
Beyond market fluctuations, life itself is unpredictable. Divorce, an unexpected illness, or a sudden career opportunity can change your financial picture. An advisor who knows you and your goals can adjust your plan thoughtfully, considering both financial and personal factors. AI can’t replicate that kind of nuanced, real-time guidance.
The Value of Human Advice
Perhaps the most compelling reason human advisors remain essential is their ability to serve as true thinking partners. They bring perspective gained from working with hundreds of clients through different life stages and market cycles. They understand not just how markets work—but how people work with money.
Human financial advisors are legally required to act in your best interest. AI tools, on the other hand, are not held to the same ethical standards. In some cases, algorithms may be designed to prioritize the platform’s profitability over your financial well-being. Having a human advisor helps ensure that your interests remain the priority.
AI will continue to evolve and enhance financial services, but the human connection, contextual understanding, and strategic guidance that advisors provide are irreplaceable. The future of financial advice isn’t about choosing between human and artificial intelligence—it’s about combining the strengths of both to create better financial outcomes for you and your family.
© 2025 Commonwealth Financial Network®
By Dan Bookham for WorkBoat Magazine
Throughout the year insurance companies meet with their agents and brokers to keep tabs on the shape of the market. Across the board and across all product lines, the most frequently flagged concerns are the potential impact of tariffs and ongoing economic uncertainty on the U.S. insurance market in 2025. Savvy insureds should be factoring this into their buying decisions.
Tariffs on imported goods, such as automobiles, auto parts, building materials (lumber, steel, etc.), and electronics, have already directly inflated the cost of repairs and replacements covered by insurance policies. This will in turn mean higher premiums as insurers will likely pass these increased claims costs onto policyholders to maintain their solvency and profitability.
Supply chain disruptions could also be a factor as the tariffs find their final level and different economic inputs begin to price for the new cost of materials. As we saw during the pandemic, such disruption can cause delays in repairs and increase the duration of claims. This can further drive up administrative costs for insurers and cause frustration for policyholders.
Industries heavily reliant on imported materials will see increased operating costs, potentially leading to higher commercial insurance premiums, not least as the replacement value of inventory, parts, fuel and other overhead will mean a need for higher exposures and policy limits.
While the tariff negotiations and adjustments appear to be ongoing, the insurance industry will continue to feel the impact of economic uncertainty such unprecedented change has brought about. Should we find ourselves in a downturn or recession, there are several things to consider on the insurance front.
During economic downturns, businesses and individuals might reduce their insurance coverage limits, opt for higher deductibles, or even cancel policies to save costs, leading to a decrease in premium income for insurers. Economic uncertainty can also increase the risk of businesses defaulting, impacting commercial insurance lines like trade credit insurance.
Investment income volatility also has a direct bearing on insurance premiums. Insurers rely on investment income. Volatile financial markets can negatively impact their investment returns, potentially pressuring underwriting profitability and leading to higher premiums. Seemingly paradoxically, insurers might adopt more conservative underwriting practices during uncertain economic times, despite the need to generate more revenue, tightening eligibility guidelines and increasing scrutiny. This is because the quickest way to not lose money on exploding claims costs is to not write the business in the first place. A crude lever to be sure, but one that does get pulled.
Economic hardship can exacerbate social inflation (increased litigation and higher jury awards), particularly in liability lines, driving up claims costs for insurers. This has been an ongoing trend for several years already; we will have to see if economic conditions accelerate this even more.
In summary, the combination of tariffs and economic uncertainty in 2025 is likely to create a challenging environment for the U.S. insurance market. Policyholders can expect to see upward pressure on premiums across various lines of business. The ability of insurers and policyholders to proactively manage risks and adapt to these evolving conditions will be crucial in mitigating the negative impacts.
Allen Insurance and Financial has earned the full $10,000 Make More Happen Award from Liberty Mutual and Safeco Insurance in recognition of the agency’s ongoing support of AIO Food & Energy Assistance (AIO), a nonprofit providing low-barrier access to food, energy, and diaper assistance across Knox County.
The award initially included a $5,000 donation, with the opportunity to double it through an online campaign. Thanks to overwhelming community support, the 500-vote threshold was met, unlocking the full $10,000 for AIO’s essential programs.
“We’re incredibly grateful to our community for stepping up to help us reach this goal,” said Jill Lang, marketing director at Allen Insurance and Financial. “This donation will go a long way in supporting AIO’s work, especially during the most challenging times of the year.”
Each week, more than 450 families rely on the AIO food market, and 750 students benefit from the weekend meals program. In 2024 alone, AIO provided over 500 energy assistance gifts to help local families stay warm without sacrificing meals.
Allen Insurance and Financial has long supported AIO through fundraising, volunteerism, and outreach. This year alone, nearly 2,400 pounds of food have been collected and $39,000 raised to help sustain AIO’s vital services.
The Make More Happen Awards recognize independent insurance agencies across the U.S. for their commitment to nonprofit partners. Allen Insurance and Financial is among 36 agencies selected in 2025, with Liberty Mutual and Safeco donating up to $360,000 in total.
