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Does the money from a child's insurance claim have to go into a trust until they are 18 years old?
Wiki User
∙ 16y ago
In most states, yes. Because it was the child's claim the settlement proceeds belong to the child and the money is put into a trust account until the child is 18. If the parents feel they are entitled to some of the money - they are the ones caring for the child, driving him/her to doctors, missing work, etc. - they should talk to the attorney about making some sort of claim.
Wiki User
∙ 16y ago
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Do you have to pay taxes when you receive money from a life insurance claim?
If you are an individual who receives the life insurance proceeds, you may not have to pay any federal income taxes on the benefits. If the life insurance policy names a trust as beneficiary, the trust may be subject to estate taxes.
Who claim the life insurance if the owner is death and the beneficiary too?
Assuming you have no will or trust set up, the money will go into your estate and distributed in probate court by a judge.
How to settle insurance claim caused by fire in respect of goods held in trust by a godown keeper?
fIRST THE GODOWN KEEPER HAS TO DISCHARGE HIS LIABILITY AS BAILEE THEN THE INSURANCE CLAIM CAN BE PAID
What happens if you find additional insurance policies where beneficary listed is absolutely excluded in trust?
In order to find a trust with life insurance proceeds the trust must be named as the beneficiary of the insurance policy. Then the trust documents specify what the funds are used for that are in the trust. If there are other life insurance policies that are still active and have other individuals named as the beneficiaries then the money from those policies cannot be placed into the trust and will be paid directly to the current beneficiary listed with the insurance company. The trust will have no claim whatsoever on these policies. It could be that these policies had their beneficiary changed when the trust was set up and the trust is the current beneficiary of them as well and he just didn't put the change form in the policy. Whatever is on record with the insurance company will be the person that the benefits are paid to no matter what.
Where can you invest 30000.00 for best return?
In your childs education trust.
Can a trustee in an irrevocable life insurance trust borrow money from a life insurance?
No to avoid estate tax penalty
Are insurance agents greedy and unhelpful?
Never really easy to know who you should trust with your money. Try taking a look at http://www.sharedfinancialsuccess.com/fortune-500-who-should-you-trust-with-your-money/. This articles discuss many topics involving insurance companies and if you should trust them.
Your daughter was named beneficiary for her fathers life insurance the money was put in a trust fund until she turned 18 Upon reaching 18 will the money she receives be taxable?
No. Life insurance proceeds are not taxable. However, depending on the trust, the earnings, if any, while in the trust may well be.
How does being a bad driver effect one's car insurance costs?
Being a bad driver will cause insurance rates to rise due to the likelihood of the need for an insurance claim. Insurance companies provide lower cost insurance to those that they believe they can trust in the long term.
Is a trust funded by life insurance policy after death of trustor?
A life insurance policy is an excellent way to fund a trust. Any way of placing necessary funds into the trust are acceptable. If you have cash and wish to fund it with cash this is fine. Life insurance is a good way to fund a trust because you can pay premiums and be assured that the money will be there when you die to fund a trust that you want to set up for someone.
What does life insurance trust do?
A life insurance trust is a form of trust which is both the owner and the beneficiary of one or more life insurance policies. It an irrevocable and non-amendable trust.
If two children are the beneficiaries on a life insurance policy and one is under the age of 18 who gets the money for the minor child?
No one. Each child will be able to collect their share of the money when they are 18. The money for the minor child will be kept by the insurance company until the minor turns 18. This is why it is not a good idea to name minors as beneficiaries of life insurance policies if the money would be necessary for the upbringing of the child. Either name an adult that you trust or create a life insurance trust to be named as the beneficiary.
