What is the name of your state (only U.S. law)? Maine
My wife and I have life insurance policies that list our kid's as the primary beneficiaries. However, they both currently under the age of 10. We have their godmother listed as a secondary beneficiary. I'm not certain what happens in the event of our death what happens to the funds from the policy, whether they'd be released under the sole ownership of the secondary beneficiary? If so, does this person have control of the funds or does it have to remain untouched until the kids are of legal age? Not that we don't trust the godmother, but we don't like the idea of the funds being able to possibly be spent on something other than directly related to raising the kids? How do I control all of this, would this be something I'd have to designate via a will, or will that not stop an insurance company from issuing the funds to whomever they see fit? Lastly, if the funds were to go to my kids, I'm assuming at legal age of 18 they would have access to it? If that is correct, is it possible via a will or other legal means to require the funds cannot be touched until they are a certain age, like 21, for example? I happen to believe that few 18 year olds are mature enough to smartly manage a large sum of money, so I'd like that to come with restrictions if possible? I'm not even sure whether all this is ironed out directly with my life insurance company or if it needs to go to an attorney that handles wills and such. Any ideas?
My wife and I have life insurance policies that list our kid's as the primary beneficiaries. However, they both currently under the age of 10. We have their godmother listed as a secondary beneficiary. I'm not certain what happens in the event of our death what happens to the funds from the policy, whether they'd be released under the sole ownership of the secondary beneficiary? If so, does this person have control of the funds or does it have to remain untouched until the kids are of legal age? Not that we don't trust the godmother, but we don't like the idea of the funds being able to possibly be spent on something other than directly related to raising the kids? How do I control all of this, would this be something I'd have to designate via a will, or will that not stop an insurance company from issuing the funds to whomever they see fit? Lastly, if the funds were to go to my kids, I'm assuming at legal age of 18 they would have access to it? If that is correct, is it possible via a will or other legal means to require the funds cannot be touched until they are a certain age, like 21, for example? I happen to believe that few 18 year olds are mature enough to smartly manage a large sum of money, so I'd like that to come with restrictions if possible? I'm not even sure whether all this is ironed out directly with my life insurance company or if it needs to go to an attorney that handles wills and such. Any ideas?