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Changing the beneficiary (and question)


DawnM
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31 minutes ago, DawnM said:

What I am reading online is that the Will actually doesn't matter when it comes to beneficiaries on accounts.   So, I guess I will need to make sure and take care of all of that on Monday morning.

He thinks he will die soon.   I am not sure he is wrong, but I need him to make it through this week!

Beneficiaries take priority(and make things super easy after someone has passed). The the will covers everything else. 

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1 hour ago, katilac said:

I don't quite understand this - you can make anyone your beneficiary. 

It might depend on state laws. It might matter if the policy is taken out before the divorce or after. It might matter if there are closer relatives (kids, etc.). It might not apply to all situations involving divorce.

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You can name whoever you like as the beneficiary, and you do not need your spouse to sign off. That spousal waiver applies to some other things with named beneficiaries, like 401ks, but not life insurance. There are very few exceptions to this. 

If you live in one of the 9 community property states, AND the premiums are paid with joint marital assets, you (as the surviving spouse) are entitled to 50% of the proceeds from certain kinds of life insurance policies, even if someone else is the named beneficiary. Paying with joint marital assets generally translates into paying from a joint banking account. If it's a work-provided policy, that is often not going to fall under the umbrella of being paid by joint marital assets. That's the most common scenario for accidental beneficiaries; the person isn't paying a monthly premium as a reminder to change it. 

If you live in Louisiana, it might also be affected by forced heirship: children under 24 or with a lifelong disability are forced heirs and entitled to a portion of your estate, including life insurance proceeds. The portion is taken from the estate as a whole, though, not directly from the policy (which is good for the named beneficiary). 

Now, if you name an irrevocable beneficiary, then you can't decide to change it (but they would tell you at the time, you wouldn't be thinking you had changed it when you hadn't). This usually comes into play with divorces, with one or both parents being required to maintain life insurance with the children as beneficiaries. 

tl;dr: check your paperwork annually and after every big life change! 

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5 hours ago, Tap said:

When xh and I divorced, I just sent in forms via fax to change them. I had to submit proof of divorce for a few, but most just needed a form signed with witnesses. 

Like 2 non family members as witnesses?   Notary? 

They are mailing us the forms, I am just trying to be prepared.   I hope my neighbors will be available if we need witnesses.   

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My dad is moving around his IRAs right now. It should be relatively easy to change beneficiary while the owner of the account is capable of doing it himself. At least it was for my dad. At the suggestion of his advisor, my dad added us kids as secondary beneficiaries. That way once they are both gone, any remaining funds go directly to the kids without probate.

The funds go directly to the beneficiaries. It does not matter what the will says in this case. The will only applies if there is no beneficiaries listed on the account.

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7 hours ago, DawnM said:

Like 2 non family members as witnesses?   Notary? 

They are mailing us the forms, I am just trying to be prepared.   I hope my neighbors will be available if we need witnesses.   

Non-family member

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1 minute ago, Tap said:

If you do need a notary, check with your bank. Mine dose it for free. Notary services can be expensive 

We have a neighbor who will come to the house for $5.   Dad can not get out anymore.   I can't get him to the bank.

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The IRA lady is mailing me the form.   I have emailed back and asked of there is one she can upload that I could print out but I have gotten nothing back yet.

The company is Moors and Cabot if anyone cares to help me find it on their site.   I can't find it.

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33 minutes ago, DawnM said:

We have a neighbor who will come to the house for $5.   Dad can not get out anymore.   I can't get him to the bank.

That is so nice, for you to have an option like that. That is so much cheaper than I see around here, even for places that you would have to walk into.

Honestly. if you think there will be any chance someone might contest the changes, I would use a notary, just in case. 

Hopefully, it will just need a non-family witness's signature. 

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Ok, she is overnighting the forms to me tomorrow morning.   She said no witnesses, and no notary.   She said to fill it out and get it back to her ASAP and she will take care of it.

I don't think my dad is going to die in the next couple of days, but please pray he doesn't!

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