Will and Primary Beneficiary

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PostPosted: Mon Nov 12, 2007 5:37 am   Post subject: Will and Primary Beneficiary  

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


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PostPosted: 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...

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PostPosted: Mon Nov 12, 2007 2:08 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.

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PostPosted: Tue Nov 13, 2007 5:24 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.



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PostPosted: 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?


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PostPosted: Wed Nov 14, 2007 1:22 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.



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PostPosted: Wed Nov 14, 2007 2:06 pm   Post subject:   

Great information Ins.maze...(that was me by the way with the prior post, forgot to log in again! Embarassed ).........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.... Crying or Very sad Thanks again....

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PostPosted: Thu Nov 15, 2007 8:32 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.

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PostPosted: Thu Nov 15, 2007 11:25 am   Post subject:   

Ok so is that the direct opposite of what ins maze said?

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PostPosted: Thu Nov 15, 2007 2:13 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".



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PostPosted: Thu Nov 15, 2007 2:18 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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PostPosted: Sun Nov 18, 2007 7:39 am   Post subject:   

By the way, for what it's worth, I agree with Ins Maze 100%.



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PostPosted: Tue Dec 04, 2007 5:14 am   Post subject: Welcome!  

Hi SleepySeattle

Your post has been shifted to the following thread for generating more responses to it!

http://www.ampminsure.org/claims/about3492.html

Regards,

Lakemen



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Last edited by lakemen on Tue Dec 04, 2007 8:54 am
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PostPosted: Tue Dec 04, 2007 5:27 am   Post subject:   

Hola Sleepy, welcome to the community.

Oh man, this one' got C-O-N-F-L-I-C-T written all over it.



Let me get this straight: He has 6 kids, was pre-deceased by his wife, and somehow "cut out" two of his 6 children from receiving an equal portion of whatever it was he had.



Now, when you said "the policy is split between his surviving children," does this in fact mean that some of his children may have also pre-deceased him?



In his will, he has the right to "cut out" anyone he chooses. I do not think, however, he ever had the ability to NOT name a specific beneficiary (primary and/or contingent) on his life insurance policy. The life insurance policy in question is basically a legal and binding contract between him and the insurance company. Wherein he promises to not misrepresent any of the information contained on his policy and to make all the required premium payments (among a host of other things).



In return, the company promises to send someone a check when the insured's heart stops beating - on a permanent basis. You pay, you pay, you pay, you die, we pay. That's it - life insurance 101. This can't happen without a beneficiary.



If his wife was his named beneficiary, her rights to his life insurance proceeds ceased when her heart stopped beating and, at that point, a named contingent beneficiary moved up the proverbial ladder. If none were named, the life insurance benefit more than likely became the property of the estate.



That's where the problems could start. If his will specifically named the two "kids" who were not to receive anything, and designated that the benefit was to be evenly split amongst the 4 remaining family members, that should have worked - unless one of the kids who had been ousted got mad, hired a good family law attorney, and contested the Order of Distribution. At that point, it's up to the system and the courts.



Good luck,

Mark



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PostPosted: Thu Sep 18, 2008 1:24 am   Post subject: will  

mother and stepfather had a will , in mother 's will she requested that her 2 daughters be in the will,5 children and the 3 would fall under 8th child.

mom died so step dad made a new will removing 8th child.


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