Divorce Agreement...Trustee for kids

[Rasesa]

What is the name of your state?

Georgia

Per the divorce agreement, we are each required to carry at least $250,000 of life insurance on the children. Further, we are required to name the other as Trustee of that money until the youngest of the three reaches the age of 22. All three children are minors.


"The words in the agreement are: Each party shall maintain a minimum of $250,000 in life insurance coverage on their life for the benefit of the minor children, designating the other party as trustee for the minor children, until such time as the youngest child attains the age of 22."

How exactly do I go about doing this? I currently carry about $1.5million in life insurance and the children are named as beneficiaries (split roughly equally). What I want to do is name their mother as trustee for the first $250,000 and someone else (or others) as trustee for the rest.

Can I simply state this in a will? Also, is this uncomplicated enough to do it via one of the myriad software packages one can purchase?

Lastly....are the words from the agreement (italicized above) ambiguous. Can it be interpreted that their mother is to be named trustee for the entire $1.5 million, or can it be reasonably inferred that I can name her for ONLY $250,000??

Thanks in advance.What is the name of your state?

 

[Dandy Don]

This is a matter of such importance (to protect the financial interests of your children) that you need to be discussing it with a certified financial planner OR a trust attorney.

You could name the children as beneficiaries but putting it in a trust guarantees that it will be distributed in whatever fashion you determine so that the kids don't fall subject to the temptation of spending it frivolously or all at once. The complication is in legally naming it and putting it into the trust, and that must be done correctly and your trust attorney or financial planner can advise you on how this is done. You get to pick who the trustee is, also.

Does your spouse also have proof that she has a policy worth $250,000 in force?

 

[seniorjudge]

...Also, is this uncomplicated enough to do it via one of the myriad software packages one can purchase?....

That could be a million dollar mistake.

Hire a lawyer.

Talk to your insurance agent.