Life Insurance payment direct deposit question

[Driver100WM]

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

Suppose someone is receiving monthly life insurance benefit payment per passing of his spouse, and he want to receive his monthly payment as direct deposit. If the bank account where he's requesting direct deposit has a joint account holder (his child or his new spouse), can that be a problem with the insurance company to do direct deposit? The person who lost his spouse is the beneficiary. Not his child or his new spouse.

 

[Zigner]

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

Suppose someone is receiving monthly life insurance benefit payment per passing of his spouse, and he want to receive his monthly payment as direct deposit. If the bank account where he's requesting direct deposit has a joint account holder (his child or his new spouse), can that be a problem with the insurance company to do direct deposit? The person who lost his spouse is the beneficiary. Not his child or his new spouse.

The insurance company won't care, but the recipient should be careful. Once that money hits the account, there's a rebuttable presumption that the money belongs equally to all account holders.

 

[Driver100WM]

The insurance company won't care, but the recipient should be careful. Once that money hits the account, there's a rebuttable presumption that the money belongs equally to all account holders.

Could you explain what you mean by "rebuttable presumption"? Would it be better to open a seperate bank account belonging solely to the recipient and then direct deposit? In the past, paper checks have been deposited into the shared bank account with no problem for over 10 years.

 

[Zigner]

Could you explain what you mean by "rebuttable presumption"? Would it be better to open a seperate bank account belonging solely to the recipient and then direct deposit? In the past, paper checks have been deposited into the shared bank account with no problem for over 10 years.

It means that any money in the account belongs to everyone. The other person could run off with a circus performer, draining all the money from the account, and it would be on YOU to prove that the money belongs only to you.

Personally, I'm comfortable with my wife. I'd just put the money in to the joint account. However, if you have any concerns what-so-ever, then I would suggest that you create a separate account for the funds.