Death Benefit payable to Child

[austin3515]

When a parent dies, and is divorced, and the minor child is the beneficiary, is there something we should be requesting to "prove" that the surviving parent should receive the money on their behalf?

Suffice it to say that the deceased's family is "concerned" that perhaps the surving parent will not use the money in the best interests of the child. So we want to make sure we dot i's and cross t's.

I have heard the term Financial Guardian before - is that something we should be requesting even with respect to the parent?

[david rigby]

Does this help?
http://benefitslink.com/boards/index.php?/topic/55523-beneficiary-is-minor-child/

[austin3515]

Hilarious... Still a good question...

[Peter Gulia]

It's often helpful, at least in analyzing the administrator's rights and responsibilities, to separate the concepts of guardianship and conservatorship. That a person is presumed, or court-ordered, as a minor's guardian of the person does not necessarily make that person a conservator or guardian of the minor's property. It's at least possible that a minor's surviving parent is a guardian of the minor's person but lacks authority concerning all or some of the minor's property.

On your questions about how much care a plan's administrator might use in satisfying itself that a proposed payee is a proper payee, what do the plan's documents say the administrator must do, and what do the plan's documents say the administrator may do?

And if the plan is ERISA-governed, is what the plan's administrator is thinking about doing (or omitting doing) within the standard of care set by ERISA section 404(a)(1)?