[WSBAPT] Life Insurance Minor Beneficiary Issue

Mon Nov 4 11:21:55 PST 2024

I repeat:  if the insurance company is trying to make it easy, why fight?  Especially if the amount of money is small?
Phil Jones

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Dalynne Singleton
Sent: Monday, November 4, 2024 11:18 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Life Insurance Minor Beneficiary Issue

This was a bar exam professional responsibility questions when I took the bar in 2003.  A minor cannot sign a legal document and Power of Attorney - the insurer should not be giving legal advice.
I agree the way to go is conservatorship or appoint a custodian for the minor for the minor account.  I did that awhile back when a Will which provided real property to two minor grandchildren.  I appointed the father as custodian first and then recorded a deed after a court order was received.

Dalynne Singleton
Gourley Law Group
Snohomish Escrow/The Exchange Connection
1002 10th Street / PO Box 1091
Snohomish, WA 98291
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From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Marcus Fry
Sent: Monday, November 4, 2024 11:02 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] Life Insurance Minor Beneficiary Issue

You have encountered a common issue.  The insurance company is asking for things that don’t work, but they don’t know it because they are just pushing out standard protocol without understanding actual facts.  Custodianship is the route I usually go.  Look at 11.114.060 & 070.  Minor guardianship is another option.

-Marcus

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Philip N. Jones
Sent: Monday, November 4, 2024 10:50 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] Life Insurance Minor Beneficiary Issue

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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
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From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto: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<mailto: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
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