[WSBAPT] Life Insurance Minor Beneficiary Issue
Philip N. Jones
philip.jones at bhlaw.com
Mon Nov 4 10:49:39 PST 2024
I am tempted to say that the insurance company is trying to make it easy for you, and you should go along. Why fight? This might be the first time in history that a life insurance company is trying to make things easy.
But be careful of the possible liability. First, who do you represent? Second, what happens if the parents abscond with the money? Will someone (the child) point the finger at you? Perhaps a professional fiduciary might be better. With a bond.
How much money is involved? If it is a small amount, the answers might be different than if it is a large amount.
Phil Jones
Philip N. Jones
BLACK | HELTERLINE LLP
805 SW Broadway, Suite 1900
Portland, OR 97205
503.417.2163 (d)
503.224.5560 (p)
503.224.6148 (f)
www.bhlaw.com
philip.jones at bhlaw.com
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Philip N. Jones.nosig
From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Ryan Castle
Sent: Monday, November 4, 2024 10:25 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Life Insurance Minor Beneficiary Issue
All,
I have an issue I have not encountered. The beneficiary of a life insurance policy is a minor child. Grandma is the deceased who listed her grandchild as beneficiary. The parents of the minor child were informed by the insurance company that the child needed to give power of attorney to the parents in order for the company to distribute funds. This is not a life insurance trust.
This sounds odd to me. A minor cannot give power of attorney, is my understanding. Has anyone encountered this issue before? It seems that proving parentage would be sufficient. The minor is 15. Should the minor talk to the insurance company and give approval for disbursement? What does the insurance company really need? Should the parents set up an account under the UTMA? Should they set up a conservatorship or guardianship in court? What am I missing?
Thanks for your help!
--
Ryan Castle (he/him)
Castle Law Firm, PLLC
Managing Attorney
T: 360-685-4260
F: 360-524-6838
1313 E. Maple St., Suite 213
Bellingham, WA 98225
https://ryancastlelawfirm.com/<https://urldefense.proofpoint.com/v2/url?u=https-3A__ryancastlelawfirm.com_&d=DwMFaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=4kml89WhbjKTTRbFRCT0kSBR3uoa4b7_3EaqjiUBdvE&m=c5qnw8jUb2rX75FqQpzeiFtcLUcERNGbC8RQGVR1x7GWJR7zLQlMi68iY-VpzZpm&s=qK1Ri-Cj1nX6nti_Js3jU_VyVbvj-oLa8si2LfuAsHw&e=>
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