Life Insurance

[gooberhead]

What is the name of your state? Ohio

My divorced brother just recently passed away with his 10 yo son as the beneficiary of his life insurance. Since the son is a minor, the bio mother will control the life insurance money. Would the mother have to demonstrate that she used the proceeds for the child? We are afraid she will sqander the insurance money instead of saving it for the child.

thanks...

 

[Dandy Don]

Did your brother have a last will and testament and was it probated in court? Who was the executor of the estate?

Ask the executor to check with the life insurance company to see how they are going to handle this payment. Since they have encountered this situation before, it is possible that they will ask the mother to set up some type of trust or savings account at a bank and then issue the check to the trust so that the mother won't have direct access to the monies and hopefully the amount will be kept in trust until the child becomes an adult.

 

[gooberhead]

Thanks... My mother is filing to be the executor. There was no will. Mother has a meeting with the probate atty this afternoon. Maybe he will give some more information.