Life Insurance – Why You Don’t Want It to Become a Probate Asset

//Life Insurance – Why You Don’t Want It to Become a Probate Asset

Life Insurance – Why You Don’t Want It to Become a Probate Asset

You don’t want your life insurance to become a probate asset. That’s why you need to meet with your lawyer in Tampa to avoid that. Your lawyer in Tampa will most likely suggest that you setup beneficiary designation assets so that you can name individuals or trust as recipients once you pass. You lawyer in Tampa will advise you that this will usually avoid probate, which is what you want.

Probate is a process that you don’t want your assets to go through. Not only does it eliminate the privacy of how your assets are distributed but it also becomes an expensive and long process. It can easily be avoided by having your lawyer in Tampa help you with your estate planning. Don’t let just anyone that wants to know your business the ability to know who your beneficiaries are and who executed your will. Private family matters should be kept private.

To prevent your life insurance from entering probate, it is crucial to name an individual or trust as the beneficiary. Failure to do so will automatically assign your life insurance to your estate which will then go through probate, and therefore have the opportunity to not be distributed as you would have liked.

As long as you have a named beneficiary, you won’t have to worry about it getting stuck in probate. However, again if no one is named or if all the beneficiaries are dead, then it will go through probate to determine who should become the recipient. So, it’s a good idea to periodically update your estate plan to reflect any changes like this. Also, keep in mind that your will and your insurance policy designation are two separate entities. You cannot put that you want everything left to your spouse in your will and expect your insurance policy to go there. Whoever is designated as the beneficiary will be the recipient. So, if you get married and wish to change your recipient to your wife, you must do so by updating the beneficiary designation.

Check out our blog for more tips and info. Contact Fresh Legal Perspective today by calling (813) 448-1042 and ask about meeting one of our lawyers!

 

By | 2018-05-03T11:07:15+00:00 April 27th, 2018|Blog|Comments Off on Life Insurance – Why You Don’t Want It to Become a Probate Asset

About the Author: