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Does the person who is named Beneficiary on a Life Insurance Policy have to split the money if they are sole beneficiary on the Life Insurance Policy however in the Will states that assets be divided?
Wiki User
∙ 6y ago
If the insured has died the proceeds from the insurance will be paid AS STATED IN THE POLICY. The proceeds of the claim are not part of the assets of the deceased's estate.
Wiki User
∙ 6y ago
Wiki User
∙ 6y agoNo. The proceeds will be paid by the insurance company to the named beneficiary. The insurance payoff is not part of the estate so it does not pass under the Will.
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Is life insurance taxable?
Life insurance proceeds paid to a beneficiary is not taxable. However, if the life insurance beneficiary is a trust or estate, there may be some tax implications.
If you die and you still have outstanding loans can they take your life insurance to pay everything off?
Life insurance paid to your estate could possibly be used to pay off personal debt. However, if the life insurance is paid to a beneficiary, it is their money, not yours, so the beneficiary has no obligation to use the money to pay off your debt.
What does a beneficiary do with a life insurance check?
In most cases, the beneficiary has no specific responsibility to do something with a life insurance payout. However, you should be careful to retain a portion of it to cover taxes that might result because of the income. Additionally, if the recipient of the proceeds gets it on behalf of another person (for example, a parent on behalf of a child), the recipient has a fiduciary duty to hold/use the funds in trust and for the best interests of the intended beneficiary.
My brother got my fathers life insurance policy and after he died he put the claim in how do i find out about it?
You will need to contact the life insurance company that held the policy. However, be aware due to US Privacy Laws you may not be entitled to receive any information. If proof of death has been shown of the insured (your father in this case) only the beneficiary (s) will be entitled to receive any information. That will depend on whether you were a beneficiary or not.
Can creditor garnish bank account with minor as beneficiary?
Yes. They cannot garnish the minor's account, however.
Is life insurance taxable?
Life insurance proceeds paid to a beneficiary is not taxable. However, if the life insurance beneficiary is a trust or estate, there may be some tax implications.
What does it mean when the beneficiary of a life insurance policy is the employer but there's a surviving spouse who is not listed as a beneficiary?
Generally, the proceeds will be paid to the named beneficiary. However, the survivor should discuss the situation with an attorney.
What is covered by disability insurance?
Disability insurance covers any impairment that is previously unknown to the beneficiary. However, the beneficiary only provides partial wage replacement to workers who are unable to work due to their disability.
Must spouse be beneficiary of life insurance policy?
No, in most cases you can name whoever you would like as your beneficiary. However, as part of some divorce proceedings a court will require that your ex-spouse remain a beneficiary as part of a alimony/palimony agreement.
Can a will be used to name a beneficiary on a life insurance policy?
A will cannot insert a name or change the name of a beneficiary of a will. However, you can have an insurance policy made payable to the estate, then give the proceeds of the policy to a named beneficiary. Problem here is that the policy proceeds run through the estate and become subject to debts and administration expenses and perhaps taxes, whereas they would not be if a beneficiary were named in the policy.
Does life insurance have to be used to pay student loans after a persons death?
It depends on who the insurance policy has named as a beneficiary. If the student is listed as the beneficiary then they can spend it however they like. If the beneficiary is a trust then the trust may have stipulations as to how it can be spent and the trustee would then be charged with spending it correctly. All of this would be spelled out in a will or trust.
Is the surviving spouse the legal beneficiary of a life insurance policy if no one is named beneficiary?
The policy would default to the Estate. which in most cases the spouse would be the executor of the estate. however, it would have to go through probate court first, so you always want to have a primary beneficiary a life insurance policy.
Can a beneficiary on life insurance refuse the responsibility?
It is not a question of refusing responsibility. The beneficiary is the person or institution designated to receive proceeds upon the death of the insured. He/she/it has no obligation to pay future premiums. However, the beneficiary is free to decline the proceeds in which case they will be paid to a contingent beneficiary listed in the policy; in none, the proceeds will be paid to the insured's estate.
Who can be a beneficiary on a life insurance policy?
In general, any living or de jure entity can be a beneficiary of a life insurance policy. However, if a minor is to be the beneficiary, the beneficiary designation is generally phrased in terms of the proceeds being paid in trust to someone else for the benefit of the minor until he/she reached legal age.If the insured initiates the insurance transaction there are generally few problems. However, if the beneficiary attempts to place insurance on the life of someone else and name him/herself as the beneficiary, questions may arise, including as to insurable interest. That is, in order for someone to insure another's life, he/she must have a "stake" in that person's continued life--otherwise, it is essentially a wagering contract which can be avoided by the insurer. The "stake" that has to exist can be financial, legal, "love and affection", but must exist in a legally recognizable form.
Your son-in-law died of cancer his job insurance has his mother as beneficiary can the beneficiary be change to his wifes name?
The only person that can change is has already passed away. It is too late to change the beneficiary. However, there may be a law in your jurisdiction that says that it has to be the spouse unless the spouse has signed off on the selection form.
Is Life Estate part of the deceased's estate?
If life insurance is payable to a beneficiary other than "the estate of ...[the decedent]", proceeds are payable directly to the named beneficiary and do not normally become part of the estate. However, if the designation of beneficiary of the life insurance policy is the estate of the decedent, proceeds do usually become part of the estate.
Is the beneficiary of an annuity responsible for paying the debts of the deceased?
No. The decedent's estate is responsible for paying the debts of the decedent. Generally, an annuity with a named beneficiary is not part of the probate assets much like life insurance payable to a named beneficiary. However, the recipient of an annuity should consult a professional regarding tax issues.
