Full question:
My ex-husband died and left our 3 toddlers as his life insurance beneficiaries. Is there a way for me, the mother to gain control of this money? Guardian of estates and Conservatorship are expensive.
- Category: Conservatorship
- Date:
- State: South Carolina
Answer:
The insurance company cannot legally pay life insurance proceeds directly to minor children, as they lack legal capacity. An adult must act on their behalf. If the policy permits payments under the Uniform Transfers to Minors Act (UTMA) or the Uniform Gifts to Minors Act (UGMA), you could receive the funds as a custodian for your children. If not, you may need to pursue a court-appointed conservatorship to manage the funds for your children.
Generally, a conservatorship involves a court appointing someone to manage the financial affairs of a minor. This process can be costly, but it ensures the funds are handled appropriately. Alternatively, establishing a trust can hold the insurance proceeds until the children reach adulthood, avoiding direct payments to minors.
In summary, while you cannot directly access the life insurance funds, there are legal avenues to manage them for your children’s benefit, including custodianship under UTMA/UGMA or a conservatorship.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.