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Husband As Owner of My Life Policy

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E

EPH389

Guest
Maryland-

I have 2 life insurance policies that my husband paid the premiums for since inception.

I am the owner. He indicated that he wanted to own my policies and I should own his policies for the proceeds from his policies would be included in his estate and combined with his other assets, it would be a tax advantage if I owned his policy. I indicated that it did not make sense, but he insisted and I signed. Weeks later I found out that he change my beneficiaries on one of my policies. He removed my daughter's name as co-beneficiary and made himself 100% primary. Mind you, he was also a co beneficiary on the 2nd policy. He then removed my family (mother, siblings) as secondary beneficiary and made his sister secondary beneficiary. I told him that he was wrong in doing this, that he should have spoken to me about it, he said he was right to do it...anyway I had it changed back where I am the owner. He became furious.

I never heard of life insurance proceeds being included in a deceased's estate. He says they are. Who is right? He says it was perfectly acceptable for him to make his sister as secondary beneficiary in case we both die. I think he was wrong for changing my beneficiaries without my consent? What do you think?
 


ALawyer

Senior Member
You both are right, and wrong.

Life insurance on your life is considered part of your estate IF you have any incidents of ownership, or had any within the past 3 years at time of death. If he owned the policies, they would not be.

But as the estate tax now starts at $1 million, for many this is no longer an issue.

Why don't you both sit down and discuss what you each would want done. IF.
 

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