by Guest » Tue Dec 04, 2007 05:12 am
I have a situation where my father died, in his last will and testament, cut out two of his six children from receiving anything. His life insurance policy does not name a beneficiary - his spouse died before him. So, the policy is split between his surviving children. Since he specifically names two of his children to not inherit anything, does the insurance policy override?
Posted: Tue Dec 04, 2007 07:38 am Post Subject: explain
Hi SleepySeattle,
His life insurance policy does not name a beneficiary - his spouse died before him. So, the policy is split between his surviving children.
I'd love to know in this regard whether his insurer has notified anything regarding such a settlement which states that it would now be split between the surviving children. Thanks, SnowballDebtor
Posted: Tue Dec 04, 2007 08:01 am Post Subject: its all about 'anything'
Hi there!
I'd personally feel that 2 of his children not receiving anything would suggest anything that he possessed at that point of time.
I have a situation where my father died, in his last will and testament, cut out two of his six children from receiving anything.
If he would have wanted anyone not to inherit his policy benefits it was his responsibility to mention it some where which he didn't. That could be one good reason why this is getting divided.
Regards, Toyboybenefactor
Posted: Tue Dec 04, 2007 08:51 am Post Subject:
Well, I guess, in the absence of the primary beneficiary of the policy the claim will be given to the first surviving members of the family, in this case the children. Under normal circumstances the death claim goes to the named beneficiary of the policy unless anything is specifically stated in the policy holder's ‘will' regarding the claim distribution.
However, in your situation, the claim settlement is likely to follow the ‘will' as there is no surviving named beneficiary and the two children will remain excluded from receiving the benefits.
The policy verbiage is very important in this regard……such as- my policy benefits will go to my children A, B and C and not to X and Y.
But before any act the ‘will' needs to be probated. Is there any appointed executor of your father's estate?
Thanks,
Niceatheart
Posted: Tue Dec 04, 2007 09:22 am Post Subject: A reply
Hi SleepySeattle,
Here is a reply to your post (at the earlier thread) that got shifted over here.
http://www.ampminsure.org/claims/beneficiary.html#12531
Thanks,
Juanita
Posted: Tue Dec 04, 2007 11:47 am Post Subject:
If I remember correctly from a former post similar, the will and the life policy stand independant...meaning, the policy payout will NOT follow the will unless the will SPECIFICALLY says don't give two of my kids my LIFE INS....see? check the other threads, but I belive I'm remembering it correctly and the proceeds from the life policy will be divided equally...barring a specific reference to those monies in his will...
Posted: Tue Dec 04, 2007 11:51 am Post Subject:
I would think the life insurance would be a completely different issue from the will and that it would have to specifically state the benefactors, does not necessarily list the non benefactors. He should have stipulated something about the insurance proceeds in the will, I do believe these are two different animals though.
Posted: Tue Dec 04, 2007 02:37 pm Post Subject: Life Insurance - no beneficiaries named
Hi SleepySeattle,
His life insurance policy does not name a beneficiary - his spouse died before him.
I would find it quite strange if your father had not named his wife as the primary beneficiary in his life insurance policy. Was she actually named in the policy?
It is unfortunate that he did not change the beneficiary after her death.
If she was named in the policy, more than likely, the life insurance proceeds will be paid to her estate. This could get complicated, because your state law will determine if the "estate" is one or separate.
I just don't quite understand whether or not there was no beneficiary named or his deceased wife was named.
Posted: Tue Dec 04, 2007 10:14 pm Post Subject:
OK...let's get this right. From what I get out of the OP:
His life insurance policy does not name a beneficiary - his spouse died before him.
Given your screen name, I am assuming that you live in the state of Washington. Washington law is clear...
The beneficiary of a life insurance policy will be the insured's estate, if:
All named beneficiaries have died before the insured and the policyowner did not name anyone else;
The estate was specifially named to receive the proceeds.
Having the estate receive the proceeds, as normally will be the case if the above circumstances apply (sound like they do), will mean that the will will have precedence, and the assets will be distributed according to the will instructions.
FYI: BAD, BAD, BAD to not have a person named to receive the proceeds of a life insurance policy. One of the main tax benefits of life insurance passing to a named beneficiary is the tax-free distribution of the principal life insurance $$ to that person, whether a real person or an entity (like a charity, etc.).
Paying the proceeds to the estate, either purposely or (in this case) accidentally causes probate costs to increase as well as a potential for estate tax liability. Not a good thing...learn from this!
InsTeacher 8)
Posted: Wed Dec 05, 2007 12:02 am Post Subject:
GREAT (as she claps her hands together) I was hoping you two (ins maze and ins teacher) would drop in on this thread!!!!! wonderful advise for the OP
Posted: Thu Jan 06, 2011 05:09 am Post Subject: beneficiary issues
If a parent dies and names one of his children as trustee. Parent names all his children as equal beneficiaries. The trustee dies and there is still a settlement to be made. The new "trustee" (next child in line) then has to distribute remainder of parent trust. the trust states the issues of the beneficiary who died would receive their share of the trust. Would a spouse of said beneficiary (an in-law) be an issue... or would the beneficiary's children receive the share of their deceased parent's trust?
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