by Guest » Mon Nov 12, 2007 05:37 am
What is there is a "Will" left the deceased mentions clearly as to how to distribute his/her assets , but the Insurance policy names only one from the "Will" as the beneficiary.
Here are my questions :-
1) Will a "Will(last testament)if present supercede Primary beneficiary
2) Although the Primary beneficiary is the custodian of the insurance money, does it not mean that it must be distributed according to the "Will" left by the deceased?
Plz clarify
Here are my questions :-
1) Will a "Will(last testament)if present supercede Primary beneficiary
2) Although the Primary beneficiary is the custodian of the insurance money, does it not mean that it must be distributed according to the "Will" left by the deceased?
Plz clarify
Posted: Mon Nov 12, 2007 12:07 pm Post Subject:
anamika welcome...
Which came first the will or the policy? Does the will say, that from the policy a b and c each get a portion? Or is the will vague, ie divide my property three ways? is the named bene. saying they will not divide this or include this policy's proceedings in the estate per the will? please be more specific and answer these few questions first...
Posted: Mon Nov 12, 2007 02:08 pm Post Subject:
I agree with Lori. There must be a specific time frame as to the constitution of the will and the policy. Beneficiaries in a will are actually entitled to legitimes or something apportioned to them by law by virtue of blood relations or consanguinty. Knowing the dates can help harmonize the beneficiaries from the written will and those designated in the policy.
Posted: Tue Nov 13, 2007 05:24 pm Post Subject: Will and Primary Beneficiary
Hi anamika,
A primary beneficiary designation in a life insurance policy has no relationship to a Will (as long as the beneficiary is a legitimate designation and is not the "Estate").
If the beneficary in the life policy was a named person or entity (other than Estate) the proceeds will pass from the insurance company to that named person.
A beneficiary for a life insurance policy cannot be changed through a Last Will and Testament.
Posted: Tue Nov 13, 2007 10:43 pm Post Subject:
WOW Ins maze that's good to know, so if let's say, a person is the bene. but the will says, entire estate to be divided equally between surviving children. You are saying that the bene. doesn't have to do that unless (maybe) the will specifically says something like, 'Bob, the bene. to my life policies is to also divide these proceeds'...Is that right?
Posted: Wed Nov 14, 2007 01:22 pm Post Subject: Willl and Beneficiary
I agree, it is a little confusing.
The proceeds of a life insurance policy normally pass directly to a named beneficiary, outside any existing Will.
Keep in mind, there are a lot of people who don't have Wills.
A life insurance contract is a legal contract in itself and the insured person has the right to name whoever he/she wants to be the beneficary. It could be the spouse, children, a trust, or some charitable organization.
In the event the insured person names the "Estate" as the primary beneficiary, this brings into play a whole new set of issues and complications. In this case, the death proceeds are made payable to the estate and then the estate may be divided according to the terms of an existing Will, if not, at the discretion of the Executor of the estate.
A Will will never direct anyone to split the proceeds of a life insurance policy if they were paid to a legitimate named beneficiary.
Posted: Wed Nov 14, 2007 02:06 pm Post Subject:
Great information Ins.maze...(that was me by the way with the prior post, forgot to log in again! :oops: ).........So in the case of our OP, it comes down to whether or not the beneficiary of the policy feels benevolent toward the other heirs re: the life policy right? He/she can simply keep all the life insurance proceeds if he so choses, or devide it up, it's totally up to him what he does with it...regardless of the will....poor OP isn't gonna like that answer I don't think.... :cry: Thanks again....
Posted: Thu Nov 15, 2007 08:32 am Post Subject:
The proceeds would go to the legatee of the Will if the Will is unumbiguous in such regards. However, if the Will is silent tehn the beneficiary under the policy would take the proceeds.
Posted: Thu Nov 15, 2007 11:25 am Post Subject:
Ok so is that the direct opposite of what ins maze said?
Posted: Thu Nov 15, 2007 02:13 pm Post Subject: Will and Beneficiary
Yes, it is in direct opposite of what I said earlier and unfortunately, the poster is wrong.
I really wish we had not brought up the term - "legatee", because this just adds more mud to the pie.
A "legatee" is a person or organization receiving a gift of an object or money under the terms of the will of a person who has died. In generic terms, a "legatee" is a "beneficiary" of the Will (not life insurance policy).
So now we have "beneficiary" of a Will and "beneficiary" of a life insurance policy. They are totally and completely different terms.
Nothing, repeat nothing, will override the beneficiary designation in a life insurance policy (outside fraud).
You can verify this information on Google - just Google "Will and life insurance".
Posted: Thu Nov 15, 2007 02:18 pm Post Subject:
I believe you dude, don't need to verify, just was attempting to clarify for the OP as it sounded to me to be the polar opposite of what you had said...The last poster is outside the US. Perhaps that might explain the difference (I hope)....thanks again!
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