Life Insurance question

[disneykid52]

What is the name of your state (only U.S. law)? I'm in Florida but beneficiary lives in NY.
Just as an example,if I have say a $50,000 life insurance policy and have my cousin listed as beneficiary, does she get the money automatically or do creditors have their say in it? Also can I acutally leave the money to her youngest (8 months old now) and have it stated in a will that she may not touch the money until said child is 25?

 

[ErinGoBragh]

What is the name of your state (only U.S. law)? I'm in Florida but beneficiary lives in NY.
Just as an example,if I have say a $50,000 life insurance policy and have my cousin listed as beneficiary, does she get the money automatically or do creditors have their say in it? Also can I acutally leave the money to her youngest (8 months old now) and have it stated in a will that she may not touch the money until said child is 25?

The insurance company is only going to pay out the funds directly to the beneficiary. Even if. Of course, then her creditors could turn around and sue her if she hasn't paid her bills in a while, but that's another animal.

You *can* leave the money to her youngest, but that could create all sorts of problems unless a trust is set up, as that's the only way to ensure that the money isn't paid out until age 25. Trusts are expensive to set up.

 

[disneykid52]

how would her creditors know i left her the money?

 

[ErinGoBragh]

how would her creditors know i left her the money?

They probably wouldn't. As I said, that is a separate issue. But if she's in debt, they will probably come after her at some point, depending on the amount owed.

 

[Dandy Don]

First you need to decide who actually gets the money and how much they are going to receive. And then plan accordingly. A will can not control and has no influence over any asset that has designated beneficiaries. Please consult with an estate planning professional or attorney to make sure your intentions can be carried out properly.

 

[elayne marlin]

How can I be denied readinf the policy when I was the beneificary.

My sister passed away less than a month ago. She had two policies that I know of. Although I know of there exetience I don't know of their worth. Since they where stored at my sister's lifepartners house. When I asked about them her partner said my sister changed her to be the beneificary one one policy and would check into the other. How can I be left out of the loop when I am the sole legal living realitive left? I know I was the beneificary at last sight

 

[ecmst12]

Don't hijack other people's threads. Start your own thread if you have a question.

 

[Dandy Don]

Elayne, it is possible that the beneficiary designation could have been changed fraudulently using a power of attorney, or the person could have decided officially to change beneficiaries on her own, which was her right to do. If you want to contest the designation, you will have to get an attorney experienced in bad faith insurance cases/insurance disputes to file an interpleader action with the insurance company so that the courts can decide.