Life Insurance We Have No One We Trust To Be A Beneficiary, What Can We Do?
Posted December 29, 2009 – 10:24 pm in: structured settlements FAQMy husband and I have two adopted children ages 3 and 5. We have several life insurance policies for us but really have no one we trust to name as beneficiaries to make sure the children would receive their money. We are older and have no family or friends that we really trust with such a large sum of money. What can we do? In a trust, do you still name someone if your children are minors?
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6 Comments
What you can do, is use the life insurance to fund a trust, and select a local law firm to act as trustee (for a fee) to that trust.
More importantly, you have to name a guardian for your children, if you should both pass before they are 18.
Your children would be the beneficiaries. Normally the person you specify to care for the child would be in control of the funds. If you you don’t like that you can name a bank or financial advisor to handle the money.
However, if you don’t trust that person with the money, I don’t know how you could trust that person with the children.
You should contact a trust company like US Trust……..this is exactly why they are in business. When there is no family member or trusted friend, a Trust company acts as the trustee. When establishing a trust with a company as the trustee, you are basically giving a corporation a set of rules and regulations on how the money will be divided up to your children over their lifetime. This makes teh most sense when dealing with a large sum of money.
Ask your tax/financial adviser to set up a trust.
Set up a Trust for minor children.
The children should be the beneficiaries with a trust to manage the money. Such an arrangement should be set up in conjunction with a will/estate plan that names guardians for your children.