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Changing BENEFICIARY

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wdebose

Guest
My ex-wife resently died and although we had been divorced for nearly 10 years, she still has me named as the BENEFICIARY. Since we have only one child, I feel he should be the logical beneficiary. Is it possible to make my son the beneficiary, instead of me? We are California residents. Is probate unavoidable?
 


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advisor10

Guest
AUG. 29, 2001

DEAR WDEBOSE:

My condolences on the passing of your ex-wife.

What is the estimated value of her estate?

Were you named as a beneficiary in her will or in her insurance policy?

You really do not need to be concerned about a beneficiary change, as such, since that is not possible. You should go ahead and claim whatever monies you are eligible to receive, and then speak to a financial planner or to someone at the trust department of a bank to set up a trust account or savings account on behalf of the child, so the money can grow and he/she can use the money at a later date.

If the estate is very small, there may be a simplified procedure that is not as complicated as probate, but you would need to speak to a local probate attorney about that (first consultation is usually free). Generally, about 90% of the time, probate is necessary, because someone needs to be responsible for claiming the decedent's money and property and paying off any outstanding debts, taxes and funeral expenses.

SINCERELY,

[email protected]
 
W

wdebose

Guest
Thanks for your kindness.

I'd estimate the value of my ex-wife's estate at about $500K. The amount subject to probate I estimate at around $300K. I was named as beneficiary on her pension and on at least 1 whole life policy. She did not leave a will.

My reason for wanting my son named as beneficiary, is that he now has a family of his own and will need access to these funds inorder to settle my ex-wife's bills. Additionally, if I received the funds, due to my salary level, much of the amount would go to taxes.

What is the best way to get these assets to my son, while minimizing the tax bite?
 
A

advisor10

Guest
AUG. 30, 2001

DEAR WDEBOSE:

You really should post your question on the INCOME TAX LAW section on this freeadvice.com website, and additionally on the www.lawguru.com website where it is more likely that an attorney who practices in your state could give you more accurate advice about your situation.

I think you may be somewhat mistaken about how your tax situation would be affected. But, in any case, it would be best if you spoke to a local certified public accountant or financial planner (first consultations are usually free or inexpensive) to figure out the best strategy to please everybody.

SINCERELY,

[email protected]
 

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