Have you checked your life insurance policies? If you have designated a beneficiary for your life insurance policy, it will not be considered part of your Estate.
What should you do? Anyone with a life insurance policy should be aware of how the funds will be handled after their passing.
The main issue for those with a life insurance policy is the designation of a beneficiary and its impact on their Estate. If a beneficiary is named in your life insurance policy, the insurer will pay the proceeds directly to them. This means that the funds from the policy will not be included in your Estate and will not be distributed according to your Will.
If there is no designated beneficiary for your life insurance policy, the funds will be included in your Estate and distributed according to your Will.
There is no right or wrong way to direct the funds from your life insurance policy, as long as you understand the implications of designating a beneficiary. However, it is important to seek advice from an expert Wills and Estates lawyer to ensure that the funds go to the intended recipient. If your insurance policy is through your pension fund, you should seek advice on how to make a binding nomination.
Remember that circumstances can change. If you have designated beneficiaries under a life insurance policy, review these nominations regularly. Divorce, relationship breakdowns, or the death of a beneficiary may require changes to be made.
When planning your Estate, it is best to seek expert legal advice from a Wills and Estates lawyer. This advice should cover all aspects of your assets and liabilities and what each beneficiary should receive. This includes your life insurance policies, whether they are through an independent insurer or pension fund. To ensure that your intentions are accurately reflected in your Will, seek professional assistance rather than risking an oversight.
