I need to know what an account that minor children's money is put into. Anyone?

Question

I would like for my life insurance money, if something was to happen to me, to be put inot an account that my children can not get until they are 21 years old. I wouls also like it to be protected from there gaurdians. I do not want anyone, to touch it except them when they turn 21. Does anyone know what this account is called? How do I make sure my life insurance company knows my wishes? Are they required to make sure the money is put in the right place, or just required to make sure the many is given to the right people?

I just want to make sure the money goes to my children when they are capable of making good financial dissisions. I hope to live a very long life, but things have been known to happen. No one know when it will be their time. I have recently had to watch family member fight over money and the wrong person blow lots of money that I beleive wasn't intended for him. Help!

Answer 1

Seek an attorney and make your will, that their inheritance is to be placed into a "Trust Fund" accessible at 21.
The attorney will guide you.

Thhis may cost $300-350.00

Answer 2

Set up an UGMA or UTMA- Uniform Gift to Minor Act or Uniform Trust for Minor Act. Either one of these will be sufficient for your intentions. If neither one is set up, then your kids can get the money when they turn 18. I hope you have a will, this will make sure that the insurance money goes into either one of these accounts and it will set up a guardian in charge of these accounts- must have one.

When you have sey up either of these accounts, contact your insurance company and change the beneficiary over to the UGMA/UTMA account. This takes care of what you need to do. Call your rep who set you up with your policy and they should be able to help you further. Hope you find this helpful.

Answer 3

You need to create a trust that could only be used for your children's health and welfare while they are younger than 21, and then at 21 they can access it. Most attorneys should be able to help you set this up. After the trust is created, contact your agent to change the beneficiary to the trust.

Without this trust, whoever has guardianship of your children has complete control of the money for any purpose.

Answer 4

You want to set up a trust.

You name trustees that are NOT guardians. That's what we've done. That way, one person gets the kids, the other pays the bills. No conflicts there. Actually, we have TWO trustees, so BOTH have to sign off on the bills.

Talk to your agent, to make sure it's set up that way. They will pay EXACTLY how your beneficiary clause is stated. So, if you have the beneficiary "Smith Kids Trust, Joe JOnes trustee", that's who it goes to. You can ALSO set up a bank or law firm as trustee.

Answer 5

hi, It relies upon. no count if it incredibly is a custodian account, and your daughter is a minor, they could desire to no longer touch that account. no count if it incredibly is desperate up as a joint account, and the two one in each of you could transact in this account, then they are in a position to levy the account. it certainly relies upon on the account identify and how this is set up. I advise checking with a supervisor or assistant supervisor at your financial business enterprise. they are in a position to the two allow you to realize or call their levy/garnishment branch to make certain. you have maximum of days to have the alternative reversed. The financial business enterprise holds the money for numerous days earlier sending the inspect (e.g. 10 days or 2 weeks). If IRS faxes a levy launch interior of that ingredient physique, the financial business enterprise will placed the money back into your account. as quickly as the verify is deliver to IRS, you the two won't get the money or it is going to take a protracted time (weeks or months). If the levy is justified, account is desperate up in this way of way that a levy could be processed against it, you're in a position to artwork some thing out with IRS. you could call them and enable them to nicely known you have been having financial problems, be spectacular to the guy on the telephone, and notice in case you're able to make a fee association to make month-to-month money. via making an association, they could ask the financial business enterprise to launch the money back on your account. solid success.

Answer 6

Its called a trust, and the best way to go about having one is to have a will put together by a lawyer.

We had to make one so that my husband's ex-wife wouldn't get a dime (because she already cost him over half a million dollars out of pure spite). We were able to make it that after we die, my stepson would not recieve any of his inheritance unti after his mother was dead too.

I know thats not what you want to do, but you can make whatever stipulations you want to in the will to make sure that the money goes to who you want it to go to.

Answer 7

I would set up a trust for your child and make the trust the beneficiary of the life insurance policy.

Answer 8

You should check with your insurance company to see if they can withhold giving out life insurance proceeds until age 21. When my mother died, I didn't get anything until I was 18 even though she died when I was 17. They usually don't give out money to minors.

Answer 9

maybe you should contact a lawyer. this sounds like something a lawyer can help you with. usually life insurance is used to pay outstanding debts, funeral costs, medical bills, and whatever is left goes to a beneficiary.

Answer 10

trust fund... talk to your insurance company and the bank to set it up