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 Posted: Fri Feb 05, 2010 7:05 pm Post subject: when you want to have a minor as a beneficiary, what wording |
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| i want to leave insurance or 401k proceeds to a minor child. what wording do i use to have the funds placed in a trust or to name a trustee to oversee the funds on behalf of the minor child? |
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abcurry
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Joined: 05 Feb 2010
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| Posted: Mon Feb 08, 2010 6:35 am Post subject: Wording |
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| When you designate a beneficiary, it is important that you specify the beneficiary's relationship to the insured. You need to consult your legal advisor about the effect of a designation. |
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Veronica
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| Posted: Tue Feb 09, 2010 2:39 am Post subject: |
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| You are most likely looking for a testamentary trust, the detail of which would be outlined in your Last Will and Testament. If you do not have one, or do not have such a provision in your will, you will need to sit with your attorney and make this change. |
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BNTRS
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| Posted: Tue Feb 09, 2010 5:41 am Post subject: |
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Hi abcurry
I'm sure your attorney will be able to guide you regarding what you should write in the trust. If you want to name a minor as beneficiary, the court will appoint a trustee or a guardian to receive the money till the kids come of age, since most plans do not transfer money directly to a minor.
When you gift the proceeds to a minor make sure you do it in a way it qualifies for annual gift tax exclusions. Consult your tax attorney for this.
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sil
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