[WSBAPT] Life insurance company requires parent of minors to be appointed guardian

Mon May 18 12:40:07 PDT 2015

I had this come to me once several years ago and the Insurance company was
fine with transferring the assets into a trust for the minor.

On Mon, May 18, 2015 at 11:48 AM, Eric Nelsen <Eric at sayrelawoffices.com>
wrote:

>  I've encountered Marketa's problem too, and always established a
> guardianship. Ch. 11.88 RCW has special provisions that eliminate a lot of
> the hassle if the sole basis for the guardianship is that the minor is a
> minor.
>
>
>
> But I also think it's silly and I am annoyed at insurance companies that
> require this. Does anyone know what the legal basis is? Is it
> contractual--does the policy specify that payments to a minor will only be
> made to a court-appointed guardian? If that's not it and they're just being
> officiously risk averse, I wonder if a court order requiring payment to a
> UTMA custodian would suffice, followed by order of contempt if they fail to
> comply. I've just never had a client willing to tilt at that particular
> windmill.
>
>
>
> Sincerely,
>
>
>
> Eric
>
>
>
> Eric C. Nelsen
>
> SAYRE LAW OFFICES, PLLC
>
> 1320 University St
>
> Seattle WA  98101-2837
>
> phone 206-625-0092
>
> fax 206-625-9040
>
>
>
>
>
>
>
> *From:* wsbapt-bounces at lists.wsbarppt.com [mailto:
> wsbapt-bounces at lists.wsbarppt.com] *On Behalf Of *John J. Sullivan
> *Sent:* Sunday, May 17, 2015 4:05 PM
> *To:* WSBA Probate & Trust Listserv
> *Subject:* Re: [WSBAPT] Life insurance company requires parent of minors
> to be appointed guardian
>
>
>
> I've always had to establish a guardianship.
>
>
>
> There is one alternative, however. You can leave it in the policy until
> the minor reaches 18. It earns statutory interest. My recollection is the
> interest rate is quite high, especially compared to today's returns.
>
>
>
> I maybe wait until the kid is 17 1/2 to establish the guardianship,
> assuming the money isn't needed.
>
>
>
> John Sullivan
>
> Sent from my iPhone
>
>
> On May 17, 2015, at 3:24 PM, Lisa Schuchman <lisa at lisaschuchman.com>
> wrote:
>
>  I tried this argument once with a life insurance company and a
> guardianship is required, but no GAL.
>
>
>
> Lisa E. Schuchman
>
> 206-325-2801
>
> www.lisaschuchman.com
>
> Education is what you get when you read the fine print.  Experience is
> what you get when you don’t. -Pete Seeger
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> *From:* wsbapt-bounces at lists.wsbarppt.com [
> mailto:wsbapt-bounces at lists.wsbarppt.com
> <wsbapt-bounces at lists.wsbarppt.com>] *On Behalf Of *Marketa Vorel
> *Sent:* Sunday, May 17, 2015 12:31 PM
> *To:* WSBA Probate & Trust Listserv
> *Subject:* [WSBAPT] Life insurance comapany requires parent of minors to
> be appointed guardian
>
>
>
> Dear Listmates,
>
>
>
> I have very little experience with guardianship of minors and the case law
> seems a bit thin on this issue.  *Is a surviving parent of minor children
> required to undergo guardianship proceedings in order to manage the minors'
> assets?*
>
> The client is mother of two minor beneficiaries on a life insurance policy
> established by her deceased spouse (the insured).  The life insurance
> company demands "guardianship papers for the finances of minor
> beneficiaries" before pay out.
>
>
>
> Client and deceased were a legally married (same-sex), client adopted both
> children at birth and has been their legal parent since then.
>
>
>
> The insured also appointed client as the children’s guardian in her will
> and established a testamentary trust under which any funds due to the
> minors shall be received and administered.  The insured’s will has been
> admitted to probate and its provisions are irrevocable and in full force
> and effect.
>
>
>
> UTMA/RCW 11.114.050, seems to give authority for client to receive and
> manage the proceeds of the insurance policy without further court
> proceedings.  Specifically, the statute provides that transfers will be
> “authorized by a will if the testator has nominated a guardian under RCW
> 11.114.030 to receive custodial property” and that a “custodian nominated
> under that section shall be a person to whom a transfer of property of that
> kind may be made under RCW 11.114.090.”
>
>
>
> AIG refuses to budge and insists on a court appointed guardian.  It seems
> like the issue of a parent being the de-facto and automatic guardian would
> be a settled one, without requiring the surviving parent to go to court to
> demonstrate guardianship of her own children.  What am I missing?
>
>
>
> Thank you in advance for any wisdom,
>
>
>
> M.
>
>
>
> --
>
> *Law Office of Marketa Vorel*
>
> 1520 K Avenue
>
> Anacortes, WA  98221
>
> 206.799.0541
>
> marketa.vorel at gmail.com
>
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-- 
Mary K. Henderson
Henderson Law Office PLLC
1123 Maple Ave SW, Suite 225
Renton, WA 98057
206-650-2472
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