life insurance beneficiary

[homer doh]

What is the name of your state? california.
i am a named beneficiary of a life insurance policy and have received a form for a death benefit claim ( $9333.00 ) I am one among three beneficiaries (siblings) I would prefer not to receive my share . can I, either/or;
1, change the name of the beneficiary of my portion only?
2, disclaim my portion and have my share divided between other 2 beneficiaries?
3, have my share paid to irrevocable trust of the decedent of which i am current trustee?
4, resign as trustee in favor of sibling named in trust document and have benefit paid to trust? Said sibling resides in oregon.

 

[HomeGuru]

What is the name of your state? california.
i am a named beneficiary of a life insurance policy and have received a form for a death benefit claim ( $9333.00 ) I am one among three beneficiaries (siblings) I would prefer not to receive my share . can I, either/or;
1, change the name of the beneficiary of my portion only?
2, disclaim my portion and have my share divided between other 2 beneficiaries?
3, have my share paid to irrevocable trust of the decedent of which i am current trustee?
4, resign as trustee in favor of sibling named in trust document and have benefit paid to trust? Said sibling resides in oregon.

**A: ask the insurance company.
signed,

Bart

 

[homer doh]

Re: Re: life insurance beneficiary

**A: ask the insurance company.
signed,

Bart

Okay, I did before I asked here. They were talking about an exclusion (do I recall right?) signed by a judge. Maybe they're just fobing me off, maybe not. This kind of money we're talking going pro-per if so, so maybe I should start talking technicalities?

 

[Dandy Don]

It would be much simpler and cause less complications all the way around if you just accepted the check and THEN donate it to whomever you wish.

What is your reasoning for declining to accept this money?

 

[homer doh]

life insurance benefit

I cannot afford to receive income. If I accept the check and pass it along it will still be counted by the IRS as income. Receipt of this money will cost me more in medical expenses than the check is worth.

 

[vinjoeana3]

Death benefit proceeds are income tax free to the beneficiary.

 

[Dandy Don]

This certainly does seem like it could be a problem, since it is very likely that the insurance company would be sending the IRS and the recipient a notice that payment would be issued. Why not have the payment made to the trust or decline it and ask that the payment be split amongst the 2 other beneficiaries (while previously arranging with these beneficiaries to inform them to accept the amount for you and you would agree to reimburse them for any federal and state income taxes that they might be charged with and then ask them to turn your share of the money over to you).

 

[homer doh]

reply

As to the other beneficiaries, I can't ask them to do that, they might not (probably not). I could give it up and piss and moan. According to the insurance Co. it takes a court order to change the beneficiary post decedence. It isn't tax that I'm concerned with, it's loss of Medicaid coverage.