Tags
Alternate Beneficiaries, Beneficiaries, Beneficiary, Community Property, Community Property States, Custodian, Deceased Beneficiary, Descendants, estate, Government Assistance, Guardian, Inherit, Inheritance, Life Insurance Policy, Minor Children, Per Capita, Per Stirpes, Policy Owner, Shared Funds, Special Needs, Special Needs Benefciairy, Special Needs Trust, Supplemental Trust, Trust, Trustee, Uniform Transfer to Minors Act, Unintended Consequences, Will
Typically, people who need to provide for others after death will purchase a life insurance policy. Although there are many types of life insurance policies, the common thread between them are beneficiary designations. In simple terms, once the policy owner perishes, the listed beneficiary will receive the proceeds from the policy. However, listing beneficiaries on a life insurance policy needs careful attention for reasons mentioned in the article List Your Beneficiaries Wisely in Your Estate Plan. Otherwise, after death, unintended consequences may occur. So, to avoid unintended consequences, properly listing beneficiaries on a life insurance policy is essential.