What actually happens to the money involved in a death benefit when mi

[John A]

If an employee in a 401(k) plan designates minor children as the beneficiaries under the 401k plan, what would happen in the event of the participant's death? Would the money go into an account in the children’s' names, which they could then access once they came of age? Could a legal guardian access the money before they came of age? Does this vary by state? If it varies by state, is there a good resource to research state law?

[Wessex]

I'm afraid I am not up on a good source for state laws, although I believe most, if not all, states have their code on line now. You might try FindLaw or Cornell University's site for possible links to an integrated source.

How to pay a minor was discussed at the following link:

http://www.benefitslink.com/boards/index.php?showtopic=5067

[KJohnson]

Obviously, check your plan document first. I have typically inserted language that mirrors the Uniform Gifts to Minor's Act into the Plan document to resolve such questions. I think a majority of states have adopted the uniform act, but you will have to check. I think there was a precursor uniform act called the uniform transfers to minors act.