The trainwreck of a divorce...

[Allen Trent]

3 named, only one a minor.

...complicated. The girls in the office where explaining how this one is going to get tricky.

Good that they paid contingents, as some carriers send it to probate because the primary bene didn't die before the insured.

The minors share will likely go to court to appoint a guardian/conservator for thr minor child. Then, carrier can pay the funds out to the minor. So, maybe that is the complicated part being suggested

 

[WinoBlues]

The minors share will likely go to court to appoint a guardian/conservator for thr minor child. Then, carrier can pay the funds out to the minor. So, maybe that is the complicated part being suggested

That is my thinking also.

So, mother may gain control in the end.

 

[Allen Trent]

So, mother may gain control in the end.

yes, but actually totally different.

Had mom gotten money direct from carrier, it would be hers 100% with no obligation to give it to kids. Also, she could have lost it in bankruptcy, a lawsuit or have blown it or made a new spouse the beneficiary of the money & kids got nothing.

Going to court & the court annually overseeing that the minors money is accounted for & still there for their future is alot better in my mind. Even though I hate seeing court involved in anything, in this situation I dont mind. For single parents, I have never had a problem naming minor children as beneficiaries if parent doesnt have a trust. Also, I like to name the child as owner & parent as custodian via indemnification agreement of MEC life policies and NQ annuity instead of having the parent or grandparent change ownership when they are adults & the parent/grandparent having to pay taxes & possible 10% IRS penalty on the gains at time of ownership change.

 

[Life Hawk]

So, mother may gain control in the end.

Working on that with her. Prompting her in the direction that will be most beneficial to her... if you know what I mean.

These are the understated important reasons to have an agent that many just don't understand. Not to mention agents that don't have a clue on how to provide service. It's much more than about getting signatures and all. Lost on most.

 

[WinoBlues]

Had mom gotten money direct from carrier, it would be hers 100% with no obligation to give it to kids. Also, she could have lost it in bankruptcy, a lawsuit or have blown it or made a new spouse the beneficiary of the money & kids got nothing.

This is also the conversation I have with people when they want to name a relative as Contingent. "It becomes their, their spouse and kids' money"

Going to court & the court annually overseeing that the minors money is accounted for & still there for their future is alot better in my mind.

100%

For single parents, I have never had a problem naming minor children as beneficiaries if parent doesnt have a trust.

Also, I like to name the child as owner & parent as custodian via indemnification agreement of MEC life policies and NQ annuity

Minor as owner - how does that work? Who makes decisions and signs?

 

[WinoBlues]

These are the understated important reasons to have an agent that many just don't understand.

It's much more than about getting signatures and all.

Yup. There are a lot of good insurance salesmen I would not recommend to a relative as an insurance agent.

 

[Allen Trent]

Minor as owner - how does that work? Who makes decisions and signs?

Similar to how a minor with a Roth IRA, Traditional IRA works. Investment company or insurance company has the guardian set up account for a minor, sign indemnification document. The guardian(usually parent) then overseas until age 18 (in most states), then the kid is owner & guardian/custodian removed from handling it. My youngest turns 18 in 10 days, Fidelity sent me a notice that it is time to send in documents to change her Roth for minor to Roth & that her after tax brokerage account removes me as overseeing it while she was minor.

 

[WinoBlues]

Similar to how a minor with a Roth IRA, Traditional IRA works. Investment company or insurance company has the guardian set up account for a minor, sign indemnification document. The guardian(usually parent) then overseas until age 18 (in most states), then the kid is owner & guardian/custodian removed from handling it. My youngest turns 18 in 10 days, Fidelity sent me a notice that it is time to send in documents to change her Roth for minor to Roth & that her after tax brokerage account removes me as overseeing it while she was minor.

View attachment 12488

Thanks

 

[bill3173]

Most states void the spouses rights to be owner or bene of a policy unless specifically spelled out in the divorce decree or a new bene for submitted after divorce naming the sane person as "ex spouse".

Problem is most people use default divorce decree & those follow state laws that normally void the right to be owner or bene after divorce is final

Yeah, and SC is one of them. That's why when the bene's sister called and told me about the divorce, and asked about the policy, I could hear the restrained jubilation in her voice. She had done her research and knew her ex sil was paying for a policy that she would receive nothing from, and asked what to do next...

 

[bill3173]

SC is the only state that I've written that voids life insurance after a divorce, and I've written court ordered life insurance after divorce there as well.

Unless something has changed, NC can only order that an existing policy be kept, or they can voluntarily keep an existing policy with ex-spouse as bene, but the contract is not auto "voided" due to divorce.