Minors as beneficiaries

[jenniferedwards]

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

Hi,
My mom was murdered by my stepfather a couple months ago. She had a life insurance policy through State Farm who was her former employer in the amount of $32,000, with myself and my 3 minor children named as beneficiaries (Myself $2000 and $10,000) for each of my children. My mom had explained to me when she designated the beneficiaries and amounts that her intention was primarily to provide my children with money for a college education and other educational necessities. My children's ages right now are 12, 5, and 3. Because of my mom being murdered, and she was the only reason me and my family moved to Arizona, we are wanting to leave the area as soon as possible to be closer to the rest of our family in Pennsylvania. Is there a way I can use $2000 out of each of their benefit amount to finance our move and then put $8,000 for each of them in an account that would grow interest and could not be drawn on until each of them is 18? Would I have to go to court to get appointed conservator, and if so, how do I go about doing that? Thank you in advance for any advice you can offer.

 

[CourtClerk]

money for a college education and other educational necessities.

What part of that is unclear? I understand your quandry, but why should 3 children be responsible for financing your move?

 

[OHRoadwarrior]

If you were being supported by your mom and now that support has ended, you could logically justify reasonable expenditure, unless the money was specifically designated in writing, for their education. As a mom, you should have been working and should be able to finance a simple move out of your own money.

 

[LdiJ]

You could borrow the money from the children and pay it back.

 

[Betty]

Naming minors as beneficiaries of a life ins. policy can present problems unless the bene is actually a trust set up for the minors with a trustee named. Otherwise, the ins. co. might hold onto the proceeds paying/adding interest until the benes reach legal age. Or the company might insist that a trustee or guardian be appointed for the minors, someone who is legally entitled to receive and manage the policy proceeds for the children.

The ins. co. I worked for & the major ins. cos. we reinsured with would handle one of these two ways. The money should be for the childrens' benefit. (Their part of the proceeds)

Your have my sympathy on the death of your Mother & in such a tragic way.