Bank as beneficiary?

[Seanscott]

What is the name of your state (only U.S. law)? Indiana

I am in poor health and don't have a lof of life insurance. I have a policy listing my wife as beneficiary and this policy will be enough to pay off the house with a little left over.
I'm afraid that when I pass away my wife will use the money for trips, gifts for the family, etc., and not pay off the house.
Is there a way that I can make sure the insurance is used to pay off the house?
Can I change the beneficiary to the bank that holds the mortgage? If so, how would I make sure that the overage goes to my wife?
Thank you very much.

 

[curb1]

What did the bank say when you called them? What did the insurance company say when you called them?

 

[Antigone*]

What is the name of your state (only U.S. law)? Indiana

I am in poor health and don't have a lof of life insurance. I have a policy listing my wife as beneficiary and this policy will be enough to pay off the house with a little left over.
I'm afraid that when I pass away my wife will use the money for trips, gifts for the family, etc., and not pay off the house.
Is there a way that I can make sure the insurance is used to pay off the house?
Can I change the beneficiary to the bank that holds the mortgage? If so, how would I make sure that the overage goes to my wife?
Thank you very much.

I don't mean this to be rude, but why would you care. You've done what you can to prepare your wife and leave her in good shape. If she decides to be an idiot and squander the money and lose the house, you'll be in the happy hunting grounds and she'll the the one miserable and houseless.

 

[tranquility]

You can create a trust as a beneficiary and then have the trust pay it off. But, I agree with Antigone*of*Greece, why would you care? Unless wife is mentally deficient in some way where a special needs trust should be set up, you've done what you can to help. She may decide to use her money as she chooses--that should be part of your gift to her. Don't try to manage her life from beyond the grave.

 

[TrustUser]

"managing beyond the grave" is often needed. some people simply are not good money managers, and never will be. they are not disciplined in that regard.

that does not mean that we dont love them. the management is a way of showing our love, and i think a very valid reason.

 

[tranquility]

Most people live their lives without the aid of the dead.

 

[Seanscott]

Legitimate questions - no doubt. I should have added more info.

My son is 13. The house and a $25,000 IRA have been put in a trust for him. I had hoped the insurance would be used to pay off the house and he would be able to inherit the property without a mortgage attached to it.

And yes, my wife is totally irresponsible when it comes to money. It was her stupidity with credit cards that forced me to take out a loan against a house I owned free and clear!! And I'm still p!ssed off about it!!

Thanks again.

 

[justalayman]

does your wife agree with your intentions?