Life Insurance Payout to a minor


My grandmother recently passed away and had a life insurance policy that was left for my son (8) and my daughter (4). They want to roll the money into one of their accounts with a 2% interest rate; however, if the money is invested through Edward Jones, they can get almost 7%. They told me that in order to do that I had to do a guardianship of the estate. They wouldn’t tell me what to do or what that means. One lawyer said that it would cost me $5,000 but the total amount is only 15,000. I’m just trying to figure out what I need to do to get the money from All State.

Marked as spam
Posted by Anonymous
Asked on July 28, 2019 8:20 am
Public question
Disclaimer: The response posted below is based upon the information made available and is not intended as a full and complete response to the question. The only manner to obtain complete and adequate legal advice is to consult with an attorney. No Q&A posting or other communication will be treated as confidential from this website and does not create an attorney-client relationship.
Private answer

Thanks for contacting us. I'm not sure who you are getting advice from but it seems that there are several options that need to be explored.
Is Allstate refusing to deliver to money to your children because they are minors?
A guardianship is an option but may be cost prohibitive if the total value of insurance benefit is only $15,000.

I recommend that you contact us at 303-688-0944 to discus facts and your options with one of our attorneys in a free case evaluation.
Just call 303-688-0944 or schedule online at

Marked as spam
Posted by (Questions: 0, Answers: 282)
Answered on July 28, 2019 3:24 pm
Private answer

The answer may depend on your grandmother's will, the insurance policy, and more generally her estate plan. Perhaps she set the account up as a UTMA account? Ideally, you would avoid a guardianship/ conservatorship if possible.

Minors can't hold property outright, so depending on how her estate plan was set up will determine if a conservatorship is needed. Regardless, assuming the guardianship/conservatorship is uncontested, it should not cost that much. If you would like to set up an appointment to speak with me to discuss your options, you can call (303) 688-0944 on Monday and ask for an appointment with Bill Henry.

Best of luck to you.


Marked as spam
Posted by Bill Henry (Questions: 1, Answers: 75)
Answered on July 28, 2019 2:54 pm