Should a life insurance policies alternate beneficiary say a name to go straight to beneficiary and not the es

Question

My life insurance go to spouse but if we are both gone 98% goes to son and 2 % to others. Should this beneficiary be to the estate of mine or directly to sons name? Do not want it held up in probate

Answer 1

There are a few options. In an effort to avoid probate you can make the beneficiary an individual or a Trust. Trust is a good way to disburse the funds over a period of time. We all know the fears of a minor receiving a large sum of money. Making a Trust allows a Trustee to manage the funds somewhat. Keep in mind, anything you appoint a beneficiary to is considered a non-testamentary transfer which would not be disbursed during probate anyway. My advice, really consider beneficiaries or ROS (Right of Survivorship) whenever you can. p.s. only dictating TX law. Check your state's Probate Code to confirm.

Answer 2

You do NOT want it to go to the estate, because then all your debts will have to be paid off, and then whatever is LEFT goes to your heirs, according to your will.

Again, I wouldn't leave it to your son if he's a minor, directly - I'd make a provision to have a TRUST set up, and the beneficiary would be the TRUST.  That would avoid probate, allow you to name the trustee, and preserve all the money for the child.

Answer 3

It will happen much faster if the beneficiary is a person, not the estate. Plus it may be probated if the estate is beneficiary.

Answer 4

If you name the estate, the benefit becomes part of the estate and is probated.  Much better to name a person.

Answer 5

It could be that the attorney named his or her practice in the documents to handle probate with fees being a percentage of the assets handled (a way of ensuring their own longevity).  If this is the case, you may want to talk to them about changing that provision or seek another legal opinion.  Your attorney (who you pay to represent your interests) should be able to explain why.  

It is generally considered better to pass assets by contract rather than probate, but seek legal advice for more detail as it relates to your specific situation.

Answer 6

You should also know that Someone under 18 can't receive life insurance money. If you leave life insurance to a minor the court will have to appoint someone to be the guardian of the money. Your best best is to leave the money to a trust or for something simpler leave the money to the person you have determined to be your child's guardian for benefit of your child. Example Beneficiary = Jack Johnson (guardian) FBO Alex Jones (child)