Legal Question in Wills and Trusts in Colorado

Re: Monies to be held in trust for benefit to surviving children.

Disclaimer: This response is for general information purposes only and does not create and attorney-client relationship. Facts not included in the question could change the outcome entirely. This is not a substitute for a fully detailed consultation with an attorney of your choice.

Response: The best answer I can give based on what you state so far is "that depends." It would be very important to know the exact language of the benefit provision of the insurance policy. Unless there were some specific limitations there as to what can be done with this money, there may be little you can do. I have never heard of such limitations being put in an insurance policy. Most of the time when you want something like that, the thing to do is to set up a trust and then make the trust the beneficiary of the insurance. All the rules about what to do with the $ would be written into the trust.

If the deceased sister just stated verbally what she wanted done with the money, that probably has no legal effect at all. It has to be in writing in a legally binding document. Even a letter would be pretty weak. Something in a will or trust would be better.

Good luck.