Chris C
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Your life insurance and how it is disbursed has nothing to do with a Will. When you name a beneficiary, the benefit amount bypasses your estate and goes directly to that beneficiary. The only time it would have any affect would be if you don't name a beneficiary on your insurance or you just name your estate as the beneficiary, which is stupid becuase then it will get taxed. You can name as many people as you want as beneficiaries and if they are minors you can appoint a trustee and instruct what age you want the kids to have access to the funds.
For the person that asked why you need insurance...it's simple...it sounds like the guy has kids so he will need money to make sure they get through school and get proper child care if he passes. You don't need a phyiscal asset to need life insurance.
The most common use of a will is to disburse assets upon death. A Will would be beneficial to you though. If you have any other types of assets, like investments or something you will need to leave instructions for those. There are also, none financial things that need to be sorted out if you pass away as well. For example, if you and your spouse (assuming you're still together) both die at the same time, who will take care of your kids? your parents? your spouses parents? maybe a favorite aunt? a close family friend? And if you are seperated from your spouse and you have custody, then what? Is your ex the person you want to take care of the kids...especially in the case of a dead beat dad or a crackhead mom or something like that? A Will doesn't just divide up your financial assets, it is the instructions for your last wishes and may prevent long draw out court battles for custody and such. |
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Shandra M
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Yes, definitely.
The insurance money would be considered an asset...which begs the question: Why do you have nearly a million dollars in life insurance?
If you are paying for this insurance, you should probably reconsider your priorities. A home is usually a much better investment for a family than an insurance policy. |
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rmg
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How old are your children? You can't leave assets to children in some states. Are your children minors. If so, then you need a will designating who will take care of them and their money.
If you work with a financial planner/adviser and an estate planning attorney you may be able to set up trusts to ensure that what you can control what your heirs do with your money.
Is your policy Term or Cash Value? Depending on how long you've had it and what kind of policy it is, it could be advantageous to buy a new policy (rates have gone down if they're based on the new tables). I mention this because you can put your insurance outside of your estate by using an Irrevocable Life Insurance Trust. The new Congress and the new President may be changing the Estate Tax Laws. It's going to affect a lot of people if the Unified Credit goes back to its original amount.
Your parents may want to go with you to the Estate Planner. Since your estate will change based on your parents estate, you both will need advice and estate planning. |
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Theresa M
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You need a WILL and you will also have to name two people you will want to over see it, I myself am doing my WILL and believe me you want to go a head and make your pre-funeral arrangments that way things will go as you want them to go..My mother is 83 & did hers 3 yrs ago this dec. & I am glad she did so my brother & mostly my sister wont cause a fight, it is the way she wanted it....
I am a firm believer in DONT leave your burden on someone else...Theresa in KY |
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TooFreaky
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The insurance co will distribute the proceeds from the insurance policy but you still need a will to distribute who gets your personal items, car, etc. With no will the state can auction off your stuff and keep the $. |
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bud68
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Life insurance benefits are paid only to the named beneficiary(ies) on file with the insurance company. But regardless of that, everyone needs a will no matter how small their estate may be. |
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dhariawad
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Usually every insurer asks for nomination. Nominee is the person who will get the claim cheque. Further you can have a will if you think nominee will not do the rightful things.
All the best. |
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Christine B
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You do need a will. If you were to inherit from your parents and die shortly later it would indeed be a mess. Your beneficiaries could also pre decease you, in which case the money would go to Your estate so make sure the contingent beneficiaries is set as well and keep your life insurance beneficiaries up to date should one of them pass away before you. I know both situations are far fetched but I'm in the just in case business. I'm a life insurance agent |
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Insurance Pickle.com
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Your will should have nothing to do with your life insurance. You never (almost never) want to have your estate as the beneficiary of your life insurance because that just slows down the process and makes it more expensive.
But, yes you should have a will for all of your other wishes. |
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Andrea
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I believe your life insurance should name the beneficiaries already. Can't imagine why you'd need a will when the beneficiaries are all ready set up. |
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editor@bcdisabilities.com
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You make a will to ensure the govt does not take the lion's share of the payout! Also, it is somewhat imprudent to discuss the fact that you have life insurance with beneficiaries. Have you not studied the novels of Agatha Christie? If not, you must, at length! |
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mbrcatz
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Not true. The life insurance policy describes how it is disbursed. A will cannot disburse life insurance procedes, unless your ESTATE is the beneficiary. |
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