Question
My son 30, bought a 2nd to die policy on us. He then transferred the policy to his nephew/our grandson. Nephew is age 9 and now the owner/beneficiary of this policy. I will be paying the premium on that policy from now on. See any problems so far?... NYS law says a minor can own property(life insurance is property) but can not direct it, transact on it, until the age of 18. However a child at age 14 1/2 can apply for and own LIFE insurance on his own life and the life of another. Question, all this was done by an insurance agent , do you think he is right and a minor can, age 9, can in fact own this policy on us and with no possibility of it being considered a part of our estate upon our expiration, for estate tax purposes. What about the IRS saying no this policy was not done correctly and it will be paid to the orginal owner , my son who bought it ?
Thank you for your time and help
DEL
Answer
You should IMMEDIATELY write to the compliance department of the insurance company that issued the second to die with your concerns. CC the insurance agent. And make sure the answer you get is in writing.