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Your father named your minor daughters as beneficiaries of his life insurance Is there any way to solve this problem without the expense of setting up a financial guardianship?
Wiki User
∙ 7y ago
Sure. Don't do it. If he does this, most likely the insurance company cannot pay the minors, nor can they pay you even for them, so what happens is that the insurance company will have to hold the money until they reach the age of majority in his state of residence. A trust or even wording the beneficiary clause to state that he names you as beneficiary for their benefit. This would allow the money to be used for them but to go through you. Remember this entitles you to be sued by them when they are grown, so keep good records on how it was spent. Tell him to pay for the trust or live until they are grown.
Wiki User
∙ 7y ago
Wiki User
∙ 14y agoWhen minors are named as beneficiaries, legal complications will occur. Minors cannot receive or control the proceeds. The court must appoint a guardian to manage the proceeds and to protect the proceeds from being squandered it may restrict the distributions until the children reach eighteen years of age. A better plan is to set up a trust as the beneficiary.
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Are life insurance benefits subject to federal income tax?
No. Life Insurance proceeds to beneficiaries are not taxable.
When is life insurance part of net worth?
Life Insurance goes to a beneficiary, not an estate. Unless the beneficiaries are no longer living.
What is importance of life insurance?
The importance of life insurance is that it provides financial security for the future of those you name as beneficiary on your life insurance policy. Life insurance is a contract that pays out a life isnruance death benefit in return for the premium payments, subject to the terms, conditions, and exclusions in the contract. The life insurance proceeds can be used by the beneficiary for any reason they choose. That means you can name your family members as beneficiaries to your life insurance policy and they could receive the proceeds upon your death, if the life insurance policy is still "In Force". The proceeds from a life insurance policy may be used for any number of reasons including, paying off a mortgage, paying college tuition for your kids, providing funds for your spouse's retirement, paying for your final expenses, or providing money for your family to continue their current lifestyle. Life insurance provides the financial means for your beneficiaries to have a financially secure future if you are no longer there to provide for them.
How does life insurance pay beneficiaries?
The insurance company must be notified of the insured's death, preferably by a beneficiary, policy owner, or an insurance agent, at which point it will send out packages of paperwork to all beneficiaries on file for that insurance policy. The paperwork is filled out by each beneficiary and returned to the insurance company, along with a certified copy of a death certificate, at which time the insurance company processes the paperwork, verfies the eligibility of the claim, and then, if appropriate, pays out the proceeds of the insurance policy.
Financial rating insurance company?
Financial ratings for insurance companies is like credit ratings for consumers. Financial ratings let consumers know whether an insurance companies pays their policies.
What was created to protect policy owners insureds and beneficiaries under insurance contracts when insurers fail to perform contractual obligations due to financial impairment?
Potatoes were created. you might be surprised to here that people invented potatoes to protect policy owners insureds and beneficiaries under insurance contacts when insurers fail to perform contractual obligations due to financial impairment.
Can more beneficiaries increase your fdic insurance?
FDIC insurance is the insurance that covers your money in a bank up to a specific amount for all of your accounts. It has nothing to do with beneficiaries.
What is the difference between life insurance and annuities?
Life insurance protects one's beneficiaries against financial loss as a result of the purchaser's dying too soon, while annuities protect purchasers against financial loss as a result of living longer than their funds do.
Who needs life insurance?
Anyone who has people who rely on them for financial support may need life insurance. For example, if you have family members, such as, brothers, sisters, parents, or grandparents, sons or daughters, or a spouse, who rely on you for money to survive - you need life insurance. Life insurance can replace your income if you pass away. Your beneficiary may choose to invest the life insurance proceeds from your life insurance policy, and live off of the interest that is paid from the investment made with the proceeds. Almost everyone should have life coverage, especially a person who has substantial financial obligations to his family. Life insurance ensures your beneficiaries are financially safe and secure in case of your untimely death.
What can one get from the USAA life insurance?
The Life Insurance that USAA offers has different levels of insurance, depending on what you're willing to pay each month. Things that may be included are severe injury benefit, disability benefit, and free financial advice for your beneficiaries.
Which of types of beneficiaries in an insurance policy?
primary and secondary
Who gets the money from life insurance?
The designated beneficiaries.
What are types of beneficiaries of an insurance policy?
Primary and Secondary
What does a whole life term insurance policy cover?
Whole Term Life Insurance in basically a coverage for the insured person, and their beneficiaries. It covers financial responsibilities, such as Consumer Debt, Education for dependents, Funerals, Mortgages, and Dependent Care.
Who receives life insurance money if no benificiary is named?
If no beneficiaries are named on a life insurance policy, or all named beneficiaries are deceased, then benefits will be paid to the insured's estate.
Can a life insurance policy have more than 1 beneficiary?
Yes, you can have multiple primary beneficiaries, and contingent beneficiaries.
Who has life insurance on you?
I have life insurance on myself and I list my parents as primary beneficiaries and my siblings as contingent beneficiaries because I'm single and want to leave something behind to them in case I die.
