I have life insurance. My beneficiareies are my 2 minor children.?

Question

If I were to die before they turn 18 would the money go into an account until their of age? Would it go to the person caring for them? Does anybody know?

Answer 1

It depends if you named a trust or trustee as beneficiary, or the children directly. The insurer can't hand money over directly to minors. Most beneficiary designations have instructions for this purpose.

You need to do a will and appoint  a guardian for your kids, in case you die before they are adults. Additionally, you do not have to name the guardian as trustee over your estate. You can appoint a different person, if you wish. Perhaps you should talk with a lawyer to set everything up correctly!

Answer 2

Well, if you don't set it up otherwise, their guardian would get full access to the funds.  

I have MINE set up to fund a TRUST, and I've named the trustee - NOT the guardians.  

I do NOT want my children having access to large amounts of money at 18.  It will all be spent by the time they turn 19, on stupid things.

Answer 3

The money would go into a trust, whoever would gain legal custody of your minor children would have acccess to the money to provide for your children, it might be a good idea to get something legal as to who you would want to be legal guardian of your children. You can even stipulate that they cannot have the money until they are a certain age!