What is the name of your state? New Jersey
My ex-wife died this past summer. I became the guardian of our 16 year-old son. I was recently contacted by my ex's insurance co. regarding a $100K policy for which my ex made our son the bene. I was told by the insurance co. I had 30 days to decide whether I would:
(a) allow them to hold the money for my son until he turns 18 at which time he would receive the full proceeds plus variable interest at a rate not less than the current rate for funds left on deposit, or
(b) file for guardianship of my son's estate in probate court after which the proceeds of the insurance policy would be paid directly to me.
When I contacted the court to try to find out how to arrange for option (b) I was told it would involve my posting a surety bond that would require fees of $600 + 3% of the
$100k/yr for 2 years.
Based on other threads I have browsed in this forum I get the impression that the insurance rep I spoke to was probably wrong about the money being paid directly to me as it seems the law is geared toward protecting a minor from a parent who might seek to exploit the minor's benefit. I think it's great that the law would protect a minor. However, my realtionship with my son has been rocky in the past, and even more so with his mother's passing. He has become morose and very rebellious. In light of his mood I have become very anxious to try to ensure that he does nothing to himself waste this benefit. I was hoping that if I could get control of the proceeds I could have a trust fund setup for my son that would allow him to make withdrawals to pay for any educational expenses, or, if he decided not to further his education, spread payments of the proceeds to him over an extended period of time so as to remove the temptation to go wild with a large sum of money that will drop into his lap on his 18th birthday.
My questions are:
(1) Is the insurance rep wrong about the policy proceeds being paid directly to me once I become guardian of my son's estate?
(2) If the proceeds of the policy cannot be paid directly to me is there any legal way I can get control of the proceeds to setup a trust fund for my son?
(3) Is the surety bond and the associated fees stated required by probate court?
(4) If it takes me longer than 30 days to become guardian of my son' estate can the insurance co. claim that I've forfeited my right to take control of the proceeds based on their deadline, or is it enough that I just contact them to let them know that I have opted to take control of the proceeds and my filing for guaridanship of the estate is in progress?
Any advice offered will be greatly appreciated. Thanks.What is the name of your state?
My ex-wife died this past summer. I became the guardian of our 16 year-old son. I was recently contacted by my ex's insurance co. regarding a $100K policy for which my ex made our son the bene. I was told by the insurance co. I had 30 days to decide whether I would:
(a) allow them to hold the money for my son until he turns 18 at which time he would receive the full proceeds plus variable interest at a rate not less than the current rate for funds left on deposit, or
(b) file for guardianship of my son's estate in probate court after which the proceeds of the insurance policy would be paid directly to me.
When I contacted the court to try to find out how to arrange for option (b) I was told it would involve my posting a surety bond that would require fees of $600 + 3% of the
$100k/yr for 2 years.
Based on other threads I have browsed in this forum I get the impression that the insurance rep I spoke to was probably wrong about the money being paid directly to me as it seems the law is geared toward protecting a minor from a parent who might seek to exploit the minor's benefit. I think it's great that the law would protect a minor. However, my realtionship with my son has been rocky in the past, and even more so with his mother's passing. He has become morose and very rebellious. In light of his mood I have become very anxious to try to ensure that he does nothing to himself waste this benefit. I was hoping that if I could get control of the proceeds I could have a trust fund setup for my son that would allow him to make withdrawals to pay for any educational expenses, or, if he decided not to further his education, spread payments of the proceeds to him over an extended period of time so as to remove the temptation to go wild with a large sum of money that will drop into his lap on his 18th birthday.
My questions are:
(1) Is the insurance rep wrong about the policy proceeds being paid directly to me once I become guardian of my son's estate?
(2) If the proceeds of the policy cannot be paid directly to me is there any legal way I can get control of the proceeds to setup a trust fund for my son?
(3) Is the surety bond and the associated fees stated required by probate court?
(4) If it takes me longer than 30 days to become guardian of my son' estate can the insurance co. claim that I've forfeited my right to take control of the proceeds based on their deadline, or is it enough that I just contact them to let them know that I have opted to take control of the proceeds and my filing for guaridanship of the estate is in progress?
Any advice offered will be greatly appreciated. Thanks.What is the name of your state?