Beneficiary Designation Mistakes you don’t want to make…
A beneficiary is the person or entity that receives the proceeds of the life insurance policy when the insured person dies.
In most states, naming an estate as beneficiary of your life insurance proceeds, brings an unpleasant fate to those benefits. When proceeds become part of the insured’s estate, this means the proceeds are not exempt from the estate’s creditors and are subject to probate. (note: laws in most states’ have an exemption from the claims of creditors for life insurance payable to named beneficiaries, such as: spouse, child(ren), parents, sibling or loved one.).
-Death taxes and administrative expenses can also claim a large portion of these benefits. Expect delays and additional expenses that other wise would NOT (more…)