Trust for Minor Children - Beneficiaries of Life Insurance

[The0racle]

What is the name of your state (only U.S. law)? OR

Currently, my ex and I are both court ordered to carry life insurance, naming our two minor children as the beneficiaries.

I would like to modify our order so that a Trust is set up in my children's names as the beneficiaries. Each party can set up individual trusts with their chosen Trustee(s).

Without a trust, my concern is that if I die while my child is a minor, the the father will petition the court as guardian to cash the claim. The child will see very little of that money. (presently 16 years old.)

If I'm able to get the court order to reflect that the beneficiaries are set up in Trust, will the custodial parent be able to petition the court after my death and have that reversed?

Thanks,

 

[nextwife]

What is the INTENT of the life insurance?


Is the life insurance intended to provide a replacement for the support the "deceased" parent would be providing the children during their minority? Because, if it is a Child support replacement, the money needs to, at least partially, go to the surviving PARENT to help provide for the child. Child Support is not intended to be paid to the child, it is supposed to go the supporting parent. Or perhaps you could each allocate a PORTION toward a trust/ college fund, and the other portion to the surviving parent?

 

[The0racle]

What is the INTENT of the life insurance?


Is the life insurance intended to provide a replacement for the support the "deceased" parent would be providing the children during their minority? Because, if it is a Child support replacement, the money needs to, at least partially, go to the surviving PARENT to help provide for the child. Child Support is not intended to be paid to the child, it is supposed to go the supporting parent. Or perhaps you could each allocate a PORTION toward a trust/ college fund, and the other portion to the surviving parent?

I hadn't thought about the child support - good point.

Yes - I if I could have child support pay out of the Trust to the CP, that would be best. The rest should be held for the children until they reach 18. Once it's "theirs", I don't believe anyone can dictate how the money is spent - can they?

I'm just concerned that if their father claims the insurance, there will be nothing left when the children turn 18.

The Order is written in such a way that it states life insurance shall be "through employment, so long as it's available."

This applies to me, but not my ex. He is not currently working. Another reason why I feel the current order needs to be modified. Seems very inequitable that I could be held in contempt but he can't.

Thanks for your feedback!