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Does a trust need to be made before the person dies?

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S

sugjackson

Junior Member
What is the name of your state (only U.S. law)? NJ

My ex-husband died and named me/his daughter under the beneficiary section in the following way: Joan Smith as trustee for Lynette Smith, born 2/22/92, ssn 999-22-2222.

When the life insurance company sent me confirmation on the death claim, they state the the beneficiary in their records reads as follows: Joan Smith, as custodian for Lynette Smith, a minor born 2/22/92, under the NJ Uniform Transfers to Minor Act.

The life insurance company is now questioning the payout of the claim and whether it will state "trustee" or "custodian". My ex-husband never set up a trust and I'm wondering if this needed to be done prior to his death.

Thank you.
 


A

anteater

Senior Member
My ex-husband died and named me/his daughter under the beneficiary section in the following way: Joan Smith as trustee for Lynette Smith, born 2/22/92, ssn 999-22-2222.
Click to expand...
Where is this stated? The beneficiary section of what?

The life insurance company is now questioning the payout of the claim and whether it will state "trustee" or "custodian".
Click to expand...
What is the life insurance company's position?
 
D

Dandy Don

Senior Member
Trustee is a generic term and a trust did not need to necessarily be set up although that would have made things easier. He was probably not aware that the term custodian would have been better to use. There is no doubt that the check will eventually be issued and you should be discussing with your bank whether they will be able to set up an account for this after you get the check.

DANDY DON IN OKLAHOMA ([email protected])
 
S

sugjackson

Junior Member
anteater said:
Where is this stated? The beneficiary section of what?

We were divorced only 2 months when he passed, and he had made this change on the beneficiary change form issued by the company.

What is the life insurance company's position?
Click to expand...
They were ready to issue the check to me as "custodian for Lynette Smith . . . but now because the amount is sizeable, they had someone audit it and are asking about a trust. A trust in her name was never set up and he didn't have a will.

Thanks for your help.
 
S

sugjackson

Junior Member
Dandy Don said:
Trustee is a generic term and a trust did not need to necessarily be set up although that would have made things easier. He was probably not aware that the term custodian would have been better to use. There is no doubt that the check will eventually be issued and you should be discussing with your bank whether they will be able to set up an account for this after you get the check.

DANDY DON IN OKLAHOMA ([email protected])
Click to expand...

Thanks for the response. A major part of my problem is that he was responsible for many bills that were in my name because of his filing bankruptcy a few years ago (yep, stupid on my part and never again). He also drove an expensive car in my name that will need to be paid off then sold. The funds will go to our daughter; however, I need to have some type of access in order to maintain my current house, etc., in addition to paying all of his bills. I have a good income, just not good enough :(
 
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