Question
Mississippi
I have a couple life insurance policies and am recently divorced. I have named my minor children as beneficiaries , but was told that this is not the right thing to do because my ex could get the money should I die. I was told to leave it to me state and the have it put in trust for them. How do I do this and can you explain it to me, do I need a lawyer or can I use a computer program to write my will?
Thanks
Answer
If you have minor children, the life insurance company will NOT pay the proceeds to them until they turn 18. Instead they will hold the proceeds at interest.
Your choices are to allow that (usually unwise) or to name a trusted family member with the understanding that the funds are for the kids (sometimes very unwise) or create a trust naming as a trustee someone you trust who is good with money or a bank or trust company, and give that person or entity discretion to use proceeds for the kids before 18, for collece expenses, and then get them the rest of the money at 21 or so.