Life insurance

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Life insurance

Unread postby Ryedog » Mon Oct 23, 2017 12:02 am

How do you guys have your life insurance structured? I have 2 kids, a 2 year old and a 4 year old and
Approximately $1,000,000 in life insurance. My ex is currently the beneficiary but I'm thinking of getting that changed. We have been divorced 4 months and today I found out she's had a boyfriend for the last 3 months. I'm worried that the funds would be used to finance her boyfriends lifestyles instead of being used for my kids.

Any advice is appreciated.
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Re: Life insurance

Unread postby Jesus Christ » Mon Oct 23, 2017 4:32 am

You should have changed all of your beneficiaries looonnng ago. Why would you want to make her a millionaire?
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Re: Life insurance

Unread postby Campfire » Mon Oct 23, 2017 6:45 am

Depending on your assets, you may want to look into a trust and a will. At the very least, change the beneficiary to anybody but your Ex-wife. I have my folks set up as the beneficiaries. If you are unsure who to name right now, I can send you my info in a PM. * fingers crossed*
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Re: Life insurance

Unread postby TJinCA » Mon Oct 23, 2017 3:17 pm

I'd definitely look at setting up a trust in your kids' names, make the trust the beneficiary of your life insurance and all of your other assets. If you trust your ex to look after her kids' best interests you can make her a trustee, if not you're free to choose someone you do trust.

But keep in mind, if you pass away then sole custody of the kids will almost certainly pass to their mom, so it would be really difficult to set things up such that she (and her boyfriend) would not benefit in any way from the kids' inheritance.

You should be able to leave specific instructions on how the trust is to be administered which could probably help with that. Definitely something to discuss with a financial advisor and an estate attorney (this is almost certainly not in your divorce attorney's wheelhouse).
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Re: Life insurance

Unread postby massdaddio » Mon Oct 23, 2017 3:49 pm

Was there anything in your divorce agreement about carrying life insurance? Both my ex and I were required to carry the same amount of life insurance with the other parent as beneficiary. My ex violated the agreement by listing my kids as beneficiary, but I just let it go and figured they could use the money for ex's share of college. With kids as young as yours, I would definitely have the money go to a trust and the trust managed by someone close to you - parents, your sibling - who would follow your wishes. If you pay child support, likely the trust will have to continue to pay it.
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Re: Life insurance

Unread postby MrCoolDC » Fri Oct 27, 2017 9:18 am

A fairly simple solution is a well-written will. All my accounts, including life insurance, have my estate as beneficiary. The will names an executor and a financial guardian for the children. The financial guardian spends money in the children's interest until they reach 30. The financial guardian is also empowered to use money in the estate to sue NJ if she blocks access to any of the relatives on my side of the family.

The will also explicitly states that NJ gets nothing.

Don't worry about your NJ starving if you die prematurely. She will also receive Social Security survivor benefits for the children, as much as $1,400 a month until they turn 18.
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Re: Life insurance

Unread postby LovingDadof2 » Mon Oct 30, 2017 12:37 pm

massdaddio wrote:My ex violated the agreement by listing my kids as beneficiary, but I just let it go and figured they could use the money for ex's share of college.

This money will go to you. The courts will not make minor's millionaires. They will name Dad as guardian for the money. You Ex really didn't cut you out.
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Re: Life insurance

Unread postby massdaddio » Mon Oct 30, 2017 3:36 pm

Good info for others, thanks LD2. It is no longer relevant for me, last kid is emancipating in 6 months. I will no longer have any financial ties to my ex, hooray!
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