Legal Question in Wills and Trusts in Texas
7 year old was named as beneficiary
my 7 yr old was name as beneficiary on my mothers life insurance policy. She cannot have the money until she is 18 and I was told I would have to apply for trustee of her money thru the courts. Please explain the procedure to me and what it will entail. I can obviously invest that money better than letting it sit in a low intrest account for the next 11 years and also what limitations on the spending is there. What if in her highschool years she want to go abroad?
2 Answers from Attorneys
Re: 7 year old was named as beneficiary
The child's inheritance will have to be managed by a trustee or deposited into the registry of the court. Many courts do not let parents be the trustee because some parents use the money to buy clothes or medical expenses. A trustee will charge money to take of the trust. The court only charges a nominal amount much less than a trustee. The money would only be available for life threatening expenses. If she want to go abroad when she is high school, she better start saving her money from bake sales today. Good Luck.
Re: 7 year old was named as beneficiary
You gave no indication of how much money you are talking about. That can make a difference in deciding on a trust or leaving the money in the registry.
You need an attorney.
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