If I list one person as a benificary on my life insurance but have someone else in my will which holds legal power? Also, does a will have to be drawn up by an attorney or can I simply write out my financial wishes and give it to some in case of an accident.
2006-11-28 04:41:06 · 3 answers · asked by bamagrits84 3 in Business & Finance ➔ Insurance
They are two different things, entirely. The life insurance will cut a check to whoever the listed beneficiary is, at the time of your death. The will cannot change the life insurance contract. So you can't change a beneficiary of a policy, using your will.
Your will is for the distribution of your ASSETS. A life insurance policy is NOT an asset. The only way you can make your will distribute life insurance procedes, is if you make the beneficiary of your will, your estate. Then the life insurance goes into your estate. All the assets of your estate and your debts get added up, the assets pay off all your debts, and any assets or money left over after all your debts are paid, gets distributed as your will says.
The whole POINT of life insurance, is to leave money to someone, that can't be attached by your debts. OK, that's not the only point, but it's the biggest one, IMO.
2006-11-28 04:53:26 · answer #1 · answered by Anonymous 7 · 0⤊ 0⤋
As others have said, your beneficiary on the policy cannot be changed by your will. If you want someone else to be named on the policy, you'll have to change it. If you want your will to determine how assets are distributed, the beneficiary of the policy should be your estate.
A will does not have to be drawn up by a lawyer. The advantage of a will that is drawn up by a lawyer is that the legality of the will is less likely to be in question. Wills can be contested by those who have an interest in your estate; a lawyer can help you to draw up a will that will stand up in court and protect your wishes for your estate. But you don't need a lawyer -- you can pick up packages at many stores that carry business materials that will give you all the forms that you need to do a will, including instructions on how to ensure that the will is legal and valid.
2006-11-28 20:46:57 · answer #2 · answered by MoniqueLise 3 · 0⤊ 0⤋
the beneficary is for a specfic policy unless it is to your estste it trumps the will
2006-11-28 12:44:49 · answer #3 · answered by Sid B 6 · 0⤊ 0⤋