Ask the Life Insurance Expert
Can I use part of life insurance from my ex (son’s father) who passed away to move and put a down payment on a house in a better area?
If you are the beneficiary, you can legally do anything you want with the money from the life insurance policy your ex left you. This includes moving and putting down money on a house with a portion of the money.
However, if the life insurance benefit was put into a trust for your son and these are not the instructions on the trust, it’s a different story.
If the life insurance money is in a trust for your minor son, his father should have selected a trustee and established the terms under which the proceeds from the policy can be used and distributed from the trust. Thus, if the money is in a trust you can’t use it for moving unless that use meets the terms of the trust. (See “Life insurance trusts for child beneficiaries”)