Beneficiary Payout, etc...

[angirocks]

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

I established a 20 year term life insurance policy when I had 2 kids so the idea was for it to be split between them 50/50 and expire when they were in college.

Now I have 2 more kids from my second marriage and my ex from first marriage is saying that if something happens, that money is for the first 2 and I need a new policy for the second 2, not to split among all 4. I see his point, but I can't afford another policy, and/or I don't want to change the policy because the rate will go up significantly with me being older now.

If something happens to me before the policy goes to term, I don't want my ex and husband fighting over who gets what. I want it to go 1/4 to each kid (50/50 to each dad) without a battle. If I have each kid designated 25% can they take that to court and dispute it based on what it was at policy inception, or is it a done deal since I said what I wanted?

Also, I want to ensure my ex (who is bad with money) can not waste the money on things that I am not intending it for. I am OK with him buying things to support the kids (house in nice area, safe car), but not go overkill (mansion, ferrarri, quit his job and live off the payout). I want him to stretch the 50% to support them until they are in college, which can be done if you are financially savvy but not if you squander. I have full custody of the kids so he lives with his mom in an apartment now. My husband says that he would want the girls to keep staying with him if I died, but I know there would be a huge fight about that and I told my husband that unless something happens to my ex before me, then that won't happen (even though stability-wise, they would be better with my husband, but their dad (although has issues) wants to be in their life).

Any guidance on any or all of these topics? Thanks guys.

I clicked close after posting on the other one and couldn't figure out how to delete

 

[ecmst12]

You can set up your life insurance any way you want. If you want some control over how the money is spent, then you want to set up a trust, so the trustee can control how the funds are disbursed. An estate planner is who you want to see.

 

[angirocks]

You can set up your life insurance any way you want. If you want some control over how the money is spent, then you want to set up a trust, so the trustee can control how the funds are disbursed. An estate planner is who you want to see.

OK, good. I have wondered what is the point of a trustee and trust. I hate to burden someone with that responsibility but it's better than leaving it up to the men!

 

[OHRoadwarrior]

OK, good. I have wondered what is the point of a trustee and trust. I hate to burden someone with that responsibility but it's better than leaving it up to the men!

I would say men have done pretty good, when it came to bringing this country as far as it has come. Woman only became into controlling roles, routinely, about 50 years ago.

 

[angirocks]

I would say men have done pretty good, when it came to bringing this country as far as it has come. Woman only became into controlling roles, routinely, about 50 years ago.

You think this country has been run well? Oh lord, if this was a political thread I would say, Ron Paul 2012 but it's not

If I leave it up to the men (in my life) to decide how the kids money is spent, they will be broke in less than 3 years tops and then what will my kids have to show for it? I know not all men are irresponsible, but I marry ones who are. Since I understand that, I want to take steps to help that not be a factor.

Anyways. I called an estate planner. He said I can create an addendum to my living will designating how the funds will be spent and I don't need an attorney for that.

 

[tranquility]

A trust of the sort being contemplated is going to be expensive to set up and run. The OP is going to spend a pretty penny to run things from the grave.

 

[anteater]

Anyways. I called an estate planner. He said I can create an addendum to my living will designating how the funds will be spent and I don't need an attorney for that.

If you are talking about an "addendum to your living will", then I think that you do need an attorney.

 

[tranquility]

If it goes into your living will (I will use the term, but assume the OP means living trust.), you will have control and ownership so the amount will be included in your estate. That may or may not be important, but, just so you know.

Also, your living will is almost assuredly created to pass your assets along, not manage them. If the will is designed to manage and pay out moneys over time, the crafter of the living will would have to be very careful. I find it unlikely the current trust is adequate for the task. That's why I didn't suggest one up front.

 

[angirocks]

If it goes into your living will (I will use the term, but assume the OP means living trust.), you will have control and ownership so the amount will be included in your estate. That may or may not be important, but, just so you know.

Also, your living will is almost assuredly created to pass your assets along, not manage them. If the will is designed to manage and pay out moneys over time, the crafter of the living will would have to be very careful. I find it unlikely the current trust is adequate for the task. That's why I didn't suggest one up front.

I don't want to micromanage it, I think the best thing would be for someone to oversee it for accountability.

I have a living will (not up to date right now, hence me trying to plan out everything) but not a living trust.

 

[tranquility]

Then, your property will pass by intestate succession when you die. Get the trust together immediately. You may write out a holographic will until you see the attorney.

 

[Betty]

Agree, in your case, talk to an attorney. He/she can help you set things up so that what you want to accomplish will happen.