Your father named your minor daughters as beneficiaries of his life insurance Is there any way to solve this problem without the expense of setting up a financial guardianship?

Answer 1

Sure. Don't do it. If he does this, most likely the insurance company cannot pay the minors, nor can they pay you even for them, so what happens is that the insurance company will have to hold the money until they reach the age of majority in his state of residence. A trust or even wording the beneficiary clause to state that he names you as beneficiary for their benefit. This would allow the money to be used for them but to go through you. Remember this entitles you to be sued by them when they are grown, so keep good records on how it was spent. Tell him to pay for the trust or live until they are grown.

Answer 2

When minors are named as beneficiaries, legal complications will occur. Minors cannot receive or control the proceeds. The court must appoint a guardian to manage the proceeds and to protect the proceeds from being squandered it may restrict the distributions until the children reach eighteen years of age. A better plan is to set up a trust as the beneficiary.