Ex-wife died and life insurance named my son as beneficary

[pixelmo]

What is the name of your state? TX

My ex died. And our son was named the beneficary of the insurance policy, (he lives with me now).

What am I suppose to do now when I get the money?

I was told that I couldnt spend the money to help support him.. And I am required to create a trust fund for him with it until he turns 18. And that I could be sue if I mismanage the money.

Is this true?

Im not planning to go blow his money in Vegas. I just wanted to be able to supplement my income since now I support him as well off my small salary.

Can I used the money to place him in a nice private school? Or buy a house for us to live in?


Thanks

 

[BelizeBreeze]

What is the name of your state? TX

My ex died. And our son was named the beneficary of the insurance policy, (he lives with me now).

oh well, that's life.

What am I suppose to do now when I get the money?

see below.

I was told that I couldnt spend the money to help support him.. And I am required to create a trust fund for him with it until he turns 18. And that I could be sue if I mismanage the money.

Sounds about right.

Is this true?

see above

Im not planning to go blow his money in Vegas. I just wanted to be able to supplement my income since now I support him as well off my small salary.

and you were doing so well. Guess what? He's YOUR son. You get to pay his way until 18. NOT take HIS money and run.

Can I used the money to place him in a nice private school? Or buy a house for us to live in?


Thanks

There are VERY LIMITED things you can do with the money as per your state laws. This is NOT your money. It's his. I would strongly suggest you see a trust attorney before you end up screwing up your life and your son's.

 

[pixelmo]

ok.

should i just roll the money into a trust and make the bank the trustee to be on the safe side?

 

[BelizeBreeze]

should i just roll the money into a trust and make the bank the trustee to be on the safe side?

That might or might not be a good idea. We don't know your specific situation so can't answer.

The best thing to do is to speak with at least three trust officers at banks around your area, a CPA and tax accountant and an attorney. Get everyone's ideas based on your situation and what your son might need in the future.