[WSBAPT] Custodianship for Insurance Proceeds?

[Marcus Fry]

Sara:
I think your answer depends on the court.  However, given the fact that the mother is relying on the insurance proceeds to provide for the children (I am not saying she shouldn’t be supported given the death of their father), I could see a court having a hard time relinquishing the protections that the guardianship is providing to the minor children.  Now, if you had a 3rd party available to serve, that might be more acceptable option with a custodian.

Marcus J. Fry
Lyon, Weigand & Gustafson, P.S.
Yakima, Washington

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From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Sara M
Sent: Thursday, February 01, 2018 9:14 AM
To: wsbapt at lists.wsbarppt.com
Subject: [WSBAPT] Custodianship for Insurance Proceeds?

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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