by arnelanna » Tue Apr 05, 2011 05:04 am
My hubby is the beneficiary to my 500,000 policy. My 3 minor children are my contingent beneficiaries. If something were to happen to us, the whole family, who then would receive the insurance benefit? I would like my sister to receive the whole benefit. Also, if just my hubby and I passed, and my children are still minors, how can I appoint my sister to receive the whole benefit in order to distribute the insurance benefit to my children? Thanks so much for your help!
Posted: Tue Apr 05, 2011 10:27 am Post Subject:
how can I appoint my sister to receive the whole benefit in order to distribute the insurance benefit to my children?
You don't want to do that. You create a trust to receive the money. You can name your sister as the Trustee and she will have to follow the instructions in the trust document.
As to your first question about the entire family's demise, the money will be paid to the policyowner's estate and parcelled out according to your will, trust, or state probate laws. You could also name your sister as a "tertiary" beneficiary to receive money not paid/payable to the primary and contingent beneficiaries.
If minor children are named as contingent beneficiaries, the will receive money only if no primary beneficiary is alive at the time of the insured's death.
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