Minor children (nieces) as beneficiaries

[spring2010]

What is the name of your state (only U.S. law)? TEXAS

I am recently divorced so I have made sure to change my will, beneficiaries for life insurance policies, POA, etc. I have no children. I named 3 of my nieces as beneficiaries of my life insurance policies. Since they are minor children, should I set up a trust for them? Revocable or Irrevocable or other? I know it wont be my problem when I am gone but I'd like to spare my brother and step-sister any headaches and I'd also like to make if I die while the nieces are minors that there is no way their parents mis-use the estate.

I do not have a lot, but the life insruance policies to add to quite a bit. Almost everything I have that is worth any value has been inherited so my brother is named as the beneficiary in my will. I have talked to all inlvolved so that they know my intend, but as I am painfully aware....these things can get nasty years down the road.

Thank you

 

[TrustUser]

you could set up 3 individual trusts, or 1 trust for all 3.

i think you might be better off making them revocable, in case you change your mind. although it is doubtful that the trusts will own much of anything until after you pass. at that time, the trusts would become irrevocable anyways.

check with your life insurance company regarding having trust/s be the beneficiary - should be no problem.

your one sentence was a bit unclear to me - did you mean to say that because most everything that you own of value already now has a beneficiary, such that anything else passes to your brother by your will ?

 

[spring2010]

Thanks so much for your response and suggestions.

I am not even sure who to talk to about setting up the one revocable trust for the benefit of my 3 nieces, but will find out as well as make sure I can name a Trust as a beneficiary for my life insurance policies. After that is done, I will change the beneficiary desgiantion to the Trust v. the 3 nieces.

In answer to your question (I think - My will leaves everything to my brother. So he will get everything I have in my possession while my nieces will be beneficiaries to my life insurance policies.