We have a trust. We also have retirement accounts, which are not listed in the trust. (We did this based on our advisors opinion that the retirement accounts would be tied up in court if one or both of us dies and would then be subject to taxes).
Our child is 1 year old. It is stated in our trust that if we both die she will go to my husband’s brother and wife.
Obviously, my husband and I put each other down as the primary beneficiary, but who comes next? Our child, or the people who are to take care of her if both my husband and I die?
Thank you!
2007-10-04 02:03:49 · 5 answers · asked by D G 2 in Business & Finance ➔ Other - Business & Finance
The beneficiary should be your child. My life insurance allows for me to have several beneficiaries, in the form I can state the percentage to go to each person. You might want to consider stating only your spouse, then your child (50/50). Keep in mind that you should have a will issued as well.
In the will you can state how much power the guardians will have in the decision making of what funds goes where. And state the length of time, i.e. while your child is a minor or when the child reaches a certain age. Of course you need to make sure that any cost, for raising your child, is covered. As well as the cost for your final "arrangements".
If you are in the USA, remember that (at least for now) Social Security will pay a survivor's benefit check to the child, in the name of the surviving spouse or the guardian.
And once you have a will, review it on a yearly basis.
2007-10-04 02:17:49 · answer #1 · answered by HR 4 · 0⤊ 0⤋
This could be litigated and contested for years in court. Your will should cover this contingency and have secondary beneficiary's explicitly stated, but usually courts favor a majority child, but since your child is only one it will probably go to the child's guardians. Fix your will, retirement accounts, and get a better adviser.
2007-10-04 09:16:19 · answer #2 · answered by Robert S 6 · 0⤊ 0⤋
You could state it in your will that it be reserved in a trust fund for her until she is 18 (old enough) to take it out. See a lawyer and write up a will with all the specifications for her support by her guardians and a reserved trust fund for her adulthood. A will can be as detailed as you want it to be.
2007-10-04 09:18:20 · answer #3 · answered by ? 5 · 0⤊ 0⤋
The child
2007-10-04 09:19:52 · answer #4 · answered by Bob D 6 · 0⤊ 0⤋
you can list your estate which will specify that the money will be used by her guardians for her care.
2007-10-04 09:09:46 · answer #5 · answered by Diane M 7 · 0⤊ 0⤋