Legal Question in Family Law in Texas
I am a divorce male in Texas, with an 8-year-old son that I provide child support too, until he is 18 and graduated from high school.
My divorce decree states that the child support is an obligation of my estate if I should die, and I have set up my son as the beneficiary of half of my life insurance policy, which should cover a "lion's share" of a lump sum payment of child support.
The question is, if I should die before my son is 18/graduated, and the life insurance disburses to him, but since he is underage, then the monies will go to his mother, my ex-wife. In Texas Divorce Law, would that disbursement be considered a "gift", and *NOT* a lump sum partial-payment of child support upon my death?
Should I take my son off as a beneficiary of my life insurance, and designate in my will that my executor is the sole beneficiary of my life insurance, and that an agreed-upon lump sum from my estate will cover the owed child support?
1 Answer from Attorneys
Number one: If your son is a minor when you die, the monies do NOT automatically go to his mother.
Number two: Proceeds of life insurance are a non-testamentary asset. This means that life insurance proceeds are paid according to your designation that's on file with an insurance company; your testamentary assets pass in accordance with your will. It's two different things.
Talk to your insurance guy. You should be able to make the life insurance proceeds payable to a trust for the benefit of your son if he's still underage when you die. The trustee pays the money to Mom each month in the same amount as the ordered child support. When the child turns 18 (or finishes high school), he gets the remaining balance.
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