Does A Will Over Ride Prior Life Insurance Policy Beneficiaries?
Posted July 13, 2009 – 4:58 pm in: structured settlements FAQLets say the Last Will and Testament says Person One has been disinherited and is to receive $1 (to prove they were acknowledged) but Person Two is to receive everything, but the old life insurance policy names Person One AND Person Two as equal beneficiaries. Who gets the money?
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6 Comments
no. A life insurance policy beneficiary designation is a non-probate distribution. It is as by the contract of insurance.
The only way that insurance proceeds are distributed by will is where the estate rather than an individual is named as beneficiary.
No, as they are two separate legal documents. The life insurance has nothing to do with the will. According to the will, Person 1 will receive the $1 and according to the insurance policy will receive 1/2 of the value of the policy.
The requirements in the policy supercede the will. It is the same with property owned by a couple in joint tenancy states – ie the surviving person automatically inherits the other person’s share of the property no matter what that person’s will might say.
Life insurance proceeds are not part of the estate. They are paid directly to the beneficiary named in the contract of insurance and disputes are decided based on the contract, not on the will.
Person one and person two will share the money from the insurance policy because they are named as beneficiaries. If the deceased had intended to keep person one from the policy proceeds they could have changed the beneficiary at any time.
Good Luck
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