While I'm not familiar with the courts in your jurisdiction, I would say that Option A would be a tough sell, Options B and C as well but maybe less so if you present it right. Personally, my recommendation would be to select a Vanguard Life Strategy Fund or Target Retirement Fund. I would lean to the LifeStrategy Moderate Growth Fund in your particular circumstances for the following reasons:
- It is easy to convince the court that Vanguard is a reputable company
- It is hands off for you, so you can convince the court that it is not in your interest, but in your sons and you will not meddle in stock picking, A/A, etc
- It is listed on the Vanguard website as a 3 out of 5 for level of risk with a 60/40 stock bond split, a very common strategy that doesn't appear to risky in the eyes of a judge
- It has a long history, been around since 1994 with over $11B in assets
- It is not overly technical and has low fees
If the payment is a lump-sum, I would invest in a lump-sum. There's much to be said for DCA but for a judge who may not understand DCA it may just appear confusing and more risky to him.
I am in court a lot as part of my job and have quite a bit of experience with judges. In my experiences I've noticed that the simpler and easier something is to understand, the more likely a judge will support your application. If a judge doesn't understand, he will likely reject it or take his sweet time making a decision because he doesn't want to make any decisions that could make him or the courts look stupid down the road. How about this headline on your state newspaper in 2024: "Boy Loses College Fund: Judge Authorizes Unqualified Dad To Manage Lump-Sum Payment"