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What happens to the life insurance proceeds when it is left to a minor child?
Wiki User
∙ 13y ago
Generally, a minor child does not have the "capacity" (the legal ability) to accept insurance proceeds. This is similar to a minor not having the capacity to enter most contracts.
The best bet in this situation is to change the beneficiary designation on the policy to one or both of the parents in trust for the child. You would have to contact the agent or the insurer to change the beneficiary designation, but this is a simple process to do-yet it must be done in writing.
Along with this, you may want to consider having a trust created to serve as the depository of the proceeds. Ideally, this should be done by an attorney, but a simple one would not be costly.
Wiki User
∙ 13y ago
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Is a spouse entitled to part of life insurance benefits even if child is named as beneficiary?
The policy is paid to the beneficiary. It should be placed in trust for the child if the child is a minor. If the child is an adult, the proceeds will be sent to the named beneficiary.
If a minor child makes a claim on a life insurance policy and another inidividual is the designated beneficiary what consideration is given to the claim by the insurance company?
The proceeds go to the beneficiary. That's why it's important to make the proper plans and trusts.
Is it cheaper for your minor child to get his own car insurance?
No... No it is not
How do you acquire guardianship papers for life insurance left to a my minor child?
The best course would be to contact a family law attorney and get them to file the papers for you if you're not familiar with the process. I always persuade my clients not to list a minor child as beneficiary on the life insurance policy. Most insurance companies will place the proceeds in an interest bearing account until the minor reaches majority. Depending on laws in your state, you will also be required to file paperwork periodically with the court to show how every penny is spent. This could have been prevented if the beneficiary was not a minor or if it was stated in the beneficiary statement (Beneficiary XX for benefit of minor child XX). This simple statement would have prevented the problems while showing the intent of the insured to care for the child.
What is a Child Insurance Plan?
Child life insurance is a form of permanent life insurance that insures the life of a minor. It is usually purchased to protect a family against the sudden and unexpected costs of a child's funeral or burial and to secure inexpensive and guaranteed insurance for the lifetime of the child.
What happens if you have a minor car accident and you have no insurance?
You pay for all damages if you were at fault, and get a citation and fine for not having insurance.
A minor child with no license hit my car will her parents auto insurance repair my car?
As the driver is a minor child, the Custodial Parent or other Custodial Entity is Financially Liable for the acts of the minor child. An auto accident may or may not be covered under the Custodians Auto insurance Policy depending on whether the child is covered or excluded from coverage on that Policy.
Can a minor child that has medicaid keep it and have another health insurance?
Absolutely - but let the child's Medicaid caseworker know so that providers will bill the private insurance first.
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.
What happens if you crash a car being a minor with no insurance?
You die because u die
Can minor be beneficiary of death insurance benefits if so is court approval required for distribution?
Ordinarily, if a minor were to be a beneficiary of a life insurance policy, the beneficiary designation would read something to the effect of: To (adult) in trust for (minor). Note further that ordinarily, life insurance proceeds pass to the beneficiary outside of the estate. Therefore, the probate court would not initially be involved. All of that said, if the proceeds are sizable, it may be a good idea to have an attorney prepare a trust agreement. This would designate the identity of the trustee and an alternate trustee and specify permitted and prohibited powers. Doing so protects the minor child as he/she can enforce the terms of the trust agreement if there is a deviation by the trustee. It also protects the trustee as it defines the precise scope of powers.
Who receives the proceeds of a life insurance policy if the insures person dies?
The person or legal entity (such as a corporation or partnership) that is named as the "beneficiary" receives the proceeds. Ordinarily, the owner of the policy is the applicant, and he/she designates the beneficiary upon application for the insurance. During the period of the insured's life, he/she normally has the power to change the beneficiary(ies).
