Beneficiary

[February2003]

What is the name of your state?
I live in Illinois.

My daughter is 8 years old. She is the sole benefactor to my life insurance policy and 401 K policy. If I should die before she is 18 in the state of Illinois will her inheritance be set aside until she reaches 18 years old-- or will her custodian (her father, my ex-husband) inherit the money as her guardian/custodian?

I have no trust set up or anything- just her name as benefactor to the policies.

Thanks for the help!

 

[I AM ALWAYS LIABLE]

What is the name of your state?
I live in Illinois.

My daughter is 8 years old. She is the sole benefactor to my life insurance policy and 401 K policy. If I should die before she is 18 in the state of Illinois will her inheritance be set aside until she reaches 18 years old-- or will her custodian (her father, my ex-husband) inherit the money as her guardian/custodian?

I have no trust set up or anything- just her name as benefactor to the policies.

Thanks for the help!

My response:

Then, you had better set up a trust. You need someplace for that money to go into should you die during her minority. Without a trust, or an annuity fund, and should you die, the father will take physical custody of your daughter's money - - because the insurance company must pay the same to an adult parent without other instructions. And, if he gets his hands on the money, even though it's your daughter's, you can be sure that it will be gone before her 18th birth date.

Now, you can make him the "custodian" of the money in the trust or annuity, AND requiring court orders PRIOR to any withdrawal of the funds.

Talk to an Estate planner.

IAAL

 

[ShyCat]

Also, for your 401(k) beneficiary to be any one other than your legal spouse, you need a signed and notarized waiver from your husband.