I want to set up an account for my minor grandaughter, where she can receive my life insurance when I die. I want this money to be held for her until she is 21, and I do not want either of her parents to ever be able to touch the money under any circumstances. How do I set up the account?
You may be able to set up an account under the Uniform Transfers to Minors Act of the state in which you reside or where your granddaughter resides. You can designate a trusted adult or a bank with trust powers to be the account's custodian. You would need your granddaughter's social security number and the agreement of the adult or trust company to serve as custodian in order to set up such an account.
The other possibility is to establish a trust now to receive the insurance proceeds. Here again, you'd need the agreement of a trusted adult or a bank with trust powers to serve as trustee.
There may be other alternatives you can take. Speak to an attorney before taking any action, since keeping the funds out of the control of the child's parents is apparently of paramount importance to you, and the attorney may have insight into other ways in which you can accomplish your goal. Once you've gotten the account or trust set up, you'll need to arrange with your life insurance company to properly word your insurance policy's beneficiary designation to ensure the funds to your granddaughter.
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You may be able to set up an account under the 