[WSBAPT] Custodianship for Insurance Proceeds?

[Sara M]

I would like to get feedback from attorneys who have set up custodianship
for minors that are beneficiaries of insurance proceeds.

Here's the scenario:

Father dies several months after divorce.  Three teenaged children are
beneficiaries of insurance policies of about $250,000/ kid.  Father agreed
in divorce decree that he would have insurance policies to cover lost child
support if he dies.

Another attorney set up this as a Limited Guardianship of the Estate for
the Mother.  Court allows total of $3000/ month to come from children's
insurance money for child support.

I took over the case after the guardianship was set up to help with
reporting.  I am preparing for annual report, but wonder if this should
have instead been set up as a Custodianship under RCW 11.114 in the first
place.

The Guardianship can work, but it requires more reporting/ bonding/
attorney work to gain access to the money for the kids support.    Mother
and client is a friend of mine, totally trustworthy, and won't be running
off with the kids money.

RCW 11.114.060(2) says a family member can request the court to establish a
custodianship.  RCW 11.114.140 authorizes the custodian to use the property
for the benefit of the minor without court order.

How would you handle this one?

Sara McCulloch
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