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Question about Life Insurance and s.s

Started by Imom, Jan 09, 2004, 01:37:33 PM

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NJDad

Hi,

In New Jersey, all insurance policies must declare the spouse as the beneficiary -unless- the spouse signs a waiver to allow the money to go to someone else. This was through both work and privately held policies. When we separated, I still had to keep all of the policies with her as the beneficiary, right up until we were divorced. Then the Court Order took over releasing me from many of them.

Check with your state to see if this is true as well.

W

LizaLou1

I'm a little confused.  I didn't think the fact one was married or not  was relevant if there was an agreement between the parties that Life Insurance would be in place for the child.

Is there an agreement or not?  If not, it sounds like you are ok.

But, for discussion purposes let's say the agreement reads like this.

The husband shall carry life insurance in the current amount covered the date of this agreement for the minor children with the wife to mange and control the funds at her discretion upon reciept.

No let's say husband dies and has named a NEW wife as the beneficary of the insurance policy contrary to the agreement.  Who gets the money?

Comments?????


Imom

no, there is no agreement, nor nothing in the co, she was the beneficary when they were dating once they split he had his dad as the beneficary, then when we were married he changed the beneficary to me, or if we both  go at once his dad is.  She first said (  because I guess she thought he would change it) since she was the beneficary she will get all the insurance, I told her that I was the beneficary now, then she said she would still get it all along with all s.s claims since she had his first son.

john5739



Depending on the state and its laws the BM may have a claim for the life insurance based on the first born rule.  In MN the DH's first born children have first claim to support.  If there is any court ordered child support the BM could contest you as the life insurance beneficiary on behalf of the first born child until that child reaches 18 yrs old.

If the policy has a significant monetary value, and you will be left financially vulnerable by DH's death, you may want to check with an attorney for some assistance in setting it up to your maximum benefit and avoid any contesting by BM.  It's better to be safe than sorry.

amarie

Thank God for that, I have like 600,000 and I had this same question toggline in my head.  Can my ex sue for that money when I named someone else as a benificiary?  he is not good with money at all if he got that money it would be blown on something ridiculous like women, cars, expensive crap ect.

Suppose all my benificiary dies?  I wrote that it should be put in a trust at the bank until her 21st.  Will this work?
amarie

MKx2

Change that age ... there isn't a 21 yo in the world who can handle that kind of money appropriately.  DH and I have given the age of 35 for my son and his 3 kids.  The only way the money can be tapped is by approval of the executor, and the only reasons that can be used are for extraordinary medical expense of self of dependent, education or home purchase, and in our wills there is a limitation of the amount that can be withdrawn for a home, and a per year cap for education.

Our children are 24, 20, 18 and 16 -- no way would I even DREAM of letting my 24 yo receive a large lump sum of money at his age even though he is incredibly responsible.

sweetnsad

21 is far too young to be given such an enormous amount of money....I don't think there is any 21 year old out there that would have any kind of responsible head when it comes to large amounts of money...You want them to have a nest egg, not nothing to show for it by the time they are 30 and possibly have a family of their own.

JMHO though...