My question involves estate planning in the state of: NY
I am trying to figure out the best way to name my minor son as beneficiary of my life insurance policy. My wife is currently the beneficiary, but I want the money to go to my son in the event my wife and I died at the same time. I was told by my life insurance agent that the best way to this is with a trust. She said that this will avoid probate.
I used the NOLO Quicken Will Maker and Online Trust software to make a trust. When naming my son as beneficiary of the trust, in the event my wife does not survive me, it gave me two options, to create a childs sub trust or name a UTMA custodian. I am not sure which to, or if a trust is the best way to go about it.
My intention is this, the person who my wife and I have chosen as guardian of our child should we both die is someone we trust very much, so is the backup guardian. I want them to be able to the use the money for my son in any way they feel is appropriate, without court interference, and of course for my son to get the remainder of the money when he reaches 18 or 21.
So, is a living trust with a UTMA custodian the best way to do this? Or another way, for instance forgoing the trust and simply naming my son as contingent beneficiary of the policy with a UTMA custodian?