You are here: Home Insurance Life Insurance 101 Naming A ... If You Want To Name A ...
Information about all aspects of finances affected by a serious health condition. Includes income sources such as work, investments, and private and government disability programs, and expenses such as medical bills, and how to deal with financial problems.
Information about all aspects of health care from choosing a doctor and treatment, staying safe in a hospital, to end of life care. Includes how to obtain, choose and maximize health insurance policies.
Answers to your practical questions such as how to travel safely despite your health condition, how to avoid getting infected by a pet, and what to say or not say to an insurance company.

Naming A Beneficiary For Your Life Insurance Policy

If You Want To Name A Spouse Your Beneficiary, Be Clear Whether It Is The Relationship That Controls

Next » « Previous

8/10

Naming your spouse as beneficiary will prevent the proceeds of your life insurance from being added to your estate for estate tax purposes. All bequests to a spouse pass to the spouse free of estate tax.

Still, keep in mind, that the proceeds could then be taxable as part of your spouse's estate -- unless, of course, the spouse spends the money.

In order to avoid confusion, list the person by name rather than by your relationship. If the beneficiary is "My husband, Harry Simms" there will be a question whether Harry receives the proceeds if you are remarried at the time of your death. If you want Harry to be beneficiary whether the two of you are married or not, designate the beneficiary just by name.

NOTE: Should you divorce, be sure and change the beneficiary if that is your wish. Divorce papers by themselves will not change the identity of whoever is the named beneficiary.

To Learn More

More Information

Taxes

Please share how this information is useful to you. 0 Comments

 

Post a Comment Have something to add to this topic? Contact Us.

Characters remaining:

  • Allowed markup: <a> <i> <b> <em> <u> <s> <strong> <code> <pre> <p>
    All other tags will be stripped.