can spouse touch life ins left to children?

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PostPosted: Wed May 20, 2009 2:06 am   Post subject: can spouse touch life ins left to children?  

I have been amicably separated from my husband of 18 years for 4.5 years. I took out a 100k life insurance policy on myself which I pay for.



I have two children...13 and 17 that I have as the beneficiaries. Is he entitled to the management of those benefits if I die and the children are still minors?



Is he entitled to the Florida spousal 30% of the benefits since we are still legally married?



He cannot manage money at all. My fear is that he can take those benefits and spend them improperly just by virtue of the fact that he would be the remaining parent.

picklesandchampagne
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PostPosted: Wed May 20, 2009 4:45 am   Post subject:   

I think in case of naming the minors as beneficiary one needs to appoint a guardian/trust for them, who would be responsible for the apportionment of the benefits in case the policy holder dies before the child reaches adulthood.



Who is the named guardian in your policy?

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PostPosted: Wed May 20, 2009 9:07 am   Post subject: insurance  

I was in the same situation, at one time. I was seperated from my (now) EX husband. ..however, yep, still married. In my Life Insurance, I had my child ( who is a minor) in my policy. I also had a very dear friend as a Beneficiary.......NOT my EX. My friend was ALSO the 'Guardian' on the policy. Anyway...............when we seperated, I had taken my EX off the Life Insurance all together. In the state I live in ( which is PA), you don't have to have your spouse on your policy.

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PostPosted: Wed May 20, 2009 10:16 am   Post subject:   

Pickles, what is it that you would like to have happen? If you do nothing, most likely it will be your ex who will be managing the money.



SDChargers Fan, we've spoken about this in the past, but if I recall correctly, your son is the contingent beneficiary which means that he gets absolutely nothing.



What does it mean to be a "guardian of the policy"?

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PostPosted: Wed May 20, 2009 2:05 pm   Post subject:   

IE...I would like to see the money used properly to insure a roof over my children's head and for expenses they may need for college.



Obviously 100 k(50k) each is barely enough for more than a year of college each, but hopefully since they are both smart and good students, they will be able to fund most of their college through scholarships, loans and financial aid.



My biggest fear is for them to not be able to make the choices they want or need to make because their father makes his usual bad financial decisions and they end up having to work 24/7 just to feed themselves and keep a roof over their head.



So, I would like for someone to administer it in such a way that they do not have to worry about incidentals and living expenses until they are either graduated from college and can start a career or until they have learned some kind of revenue generating trade.



I am thinking that naming them as primary beneficiaries and then naming my best friend as secondary or guardian might be the way to go. I hope desperately though that he is not able to sue my estate for the spousal 30% that Florida. I just don't know if life insurance falls under that law or not.



Thanks for all the input...

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PostPosted: Wed May 20, 2009 3:06 pm   Post subject:   

Quote:
I have two children...13 and 17 that I have as the beneficiaries. Is he entitled to the management of those benefits if I die and the children are still minors?


Yes, as he would be their default natural legal guardian since he is their Father.

You could do a pre-need guardianship of the minor children's property or set up a trust.







Quote:
Is he entitled to the Florida spousal 30% of the benefits since we are still legally married?


No.



In Florida the proceeds are paid EXCLUSIVELY to the named beneficiary of the life insurance policy. Florida Statute 222.13



SEE THIS LINKY.

Quote:
222.13 Life insurance policies; disposition of proceeds.



(1) Whenever any person residing in the state shall die leaving insurance on his or her life, the said insurance shall inure exclusively to the benefit of the person for whose use and benefit such insurance is designated in the policy, and the proceeds thereof shall be exempt from the claims of creditors of the insured unless the insurance policy or a valid assignment thereof provides otherwise. Notwithstanding the foregoing, whenever the insurance, by designation or otherwise, is payable to the insured or to the insured's estate or to his or her executors, administrators, or assigns, the insurance proceeds shall become a part of the insured's estate for all purposes and shall be administered by the personal representative of the estate of the insured in accordance with the probate laws of the state in like manner as other assets of the insured's estate.


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PostPosted: Wed May 20, 2009 10:58 pm   Post subject:   

Thank you Gary! Great info!



So what I need to do to keep him from touching the money if they are minors is to do a pre need guardianship of the money?



I have just purchased a NOLO estate and will book. Perhaps that form is in there.



Thanks so much!

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PostPosted: Wed May 20, 2009 11:23 pm   Post subject:   

Quote:
So what I need to do to keep him from touching the money if they are minors is to do a pre need guardianship of the money?


Yes, some type of children's trust for the minor children's property. You'll have to contact an attorney or ask your life insurance agent for a referral as he/she probably works with an attorney.



This is very common where a person may be a great caretaker for the children but just isn't worth a damn when handling money.



Myself and attorney Steven W. Moore did a radio show on this topic on April 30th 2009. I've provided links below if you'd like to listen to the show and for shameless self promotion! ShockedCool



First Segment



Second Segment



Third Segment



Final Segment


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PostPosted: Wed May 20, 2009 11:36 pm   Post subject:   

Shameless self promotion is never a bad thing Gary! I do it myself....LOL



Thanks again!

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PostPosted: Wed May 20, 2009 11:40 pm   Post subject:   

Ah...I just found the will form that has a trust and guardian of property in it. In reading it,,,it seems like just the ticket!

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PostPosted: Thu May 21, 2009 12:37 am   Post subject:   

You really want to run this by an attorney. However, what is typically done in this type of situation is that you would change your primary beneficiary to read something along the lines of "trustee under the will of the insured" and then the will will control what happens to the money.

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PostPosted: Thu May 21, 2009 2:01 am   Post subject: insurance  

Quote:
your son is the contingent beneficiary which means that he gets absolutely nothing.

i was told, in the state of PA, since my son is STILL a Minor, he cannot be 'Primary' Beneficiary. I have my best friend as 'Primary' right now. Was I told incorrect information?
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PostPosted: Thu May 21, 2009 9:22 am   Post subject:   

Well, I think that the laws regarding appointing beneficiary in a life insurance plan is somewhat uniform across the states. Therefore, if naming a minor as beneficiary with an appointed guardian/trust to hold fund till the minor reaches the legal age is allowed in other states it should be the same in PA as well.



However, Sd you must also wait for the expert’s to comment on this issue.

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PostPosted: Thu May 21, 2009 10:05 am   Post subject:   

Quote:
i was told, in the state of PA, since my son is STILL a Minor, he cannot be 'Primary' Beneficiary. I have my best friend as 'Primary' right now. Was I told incorrect information?


You can name a minor as the beneficiary but the insurance company will not pay the proceeds to a minor child.



They will hold those funds in trust for the minor child until the child reaches age 18.



The guardian of the minor child would then only be able to access those funds by way of court order.



SD your "best freind" being named as beneficary is a mistake. If you die it's her money NOT your son's. I don't care how much you may trust this person...people change when people die.



Not to mention the fact if you die the life insurance money is hers, then if she dies that money goes to her family NOT your son.


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PostPosted: Thu May 21, 2009 10:37 am   Post subject:   

Gary's totally correct on this SD, we've tried to caution you about this. I know I know that you love and trust her, and everything could work out just as you want, until SHE dies... as Gary pointed out all that money then goes to her kids/estate and there is dang little if anything you could do to prevent it, (well YOU couldnt' do anything you'd be dead...but you know what i mean Wink )...



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Last edited by Lori on Thu May 21, 2009 12:43 pm
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