Death Benefit

[jordynhollander]

What is the name of your state (only U.S. law)? NEW YORK
My Mother has late stage cancer and is slowly slipping away from us, and has left a substantial life insurance policy to her parents, myself (her son) and my daughter (her granddaughter)... 1/3,1/3, 1/3....

In her Will, she has given me full executor, executrix, and custodial rights for all of her property and also put me in charge of anything left for my daughter.

The question I have is the Life Insurance Money... how will the portion left for my daughter be handled? It is my Mother's wishes that I manage it on behalf of my daughter (Perhaps start a college fund or something), which I intend to do, but am unclear how the insurance company will handle the benefit payable to my daughter who is now only 6 years old.

Please advise, as my Mother will call the insurance company and make changes to the policy if it will cause difficulties in me managing the money on my daughters behalf as set forth in her will.

Please AdviseWhat is the name of your state (only U.S. law)? NEW YORK

 

[BlondiePB]

What is the name of your state (only U.S. law)? NEW YORK
My Mother has late stage cancer and is slowly slipping away from us, and has left a substantial life insurance policy to her parents, myself (her son) and my daughter (her granddaughter)... 1/3,1/3, 1/3....

In her Will, she has given me full executor, executrix, and custodial rights for all of her property and also put me in charge of anything left for my daughter.

The question I have is the Life Insurance Money... how will the portion left for my daughter be handled? It is my Mother's wishes that I manage it on behalf of my daughter (Perhaps start a college fund or something), which I intend to do, but am unclear how the insurance company will handle the benefit payable to my daughter who is now only 6 years old.

Please advise, as my Mother will call the insurance company and make changes to the policy if it will cause difficulties in me managing the money on my daughters behalf as set forth in her will.

Please AdviseWhat is the name of your state (only U.S. law)? NEW YORK

Have/help mom check into drafting a trust document for your daughter with the stipulations in writing. And check to see if your daughter's portion of the monies need to be changed to go to the trust (beneficiary being the trust for your daughter). Do seek an attorney for this.

As things stand now, the monies will be only released by the insurance company when a guardian/conservator of your daughter's estate be set up by court appointment or a court ordered trust that will end upon her 18th birthday.

 

[jordynhollander]

Custodian vs Conservator

Hi. Thanks for the reply...

The Will says "Pursuant to Section 7-6.3 Estates, Powers and Trusts Law of the State of New York in effect at the time of my death and the uniform Transfers to minors Act, I Nominate, constitute and Appoint my Son (My Name) as Custodian of any custodial property created by this will for the benefit of my Grand Daughter (Her Name). I give to my custodian named herein any and all powers, authority and discretion, permitted by the State of New York which may be exercised by my fiduciaries as often as the deem advisable without the necessity of any application to or approval by any court.

Is that what you are talking about??? Or does she need to do something else in regards to the insurance policy? It is her intention for me to be able to manage the money on behalf of my daughter, and for me not to be hindered by any court or agency preventing me to do so.

Thanks again for the advice!