If you have a life insurance policy and you have also outlined your intentions for someone to receive benefits in a will, bear in mind that the life insurance policy will revert to the beneficiary, both primary and contingent, that is named on your policy. This is regardless of what is stated in your will, as the life insurance beneficiary form will trump what is outlined in your will.ThinkstockPhotos-179242090

While you might have the best of intentions outlining what you intend for someone to receive in your individual will, you need to go one step further and ensure that your life insurance policy always has an accurate beneficiary listed. The life insurance company is instructed to provide the proceeds of your policy if you are to pass away to the primary beneficiary and/or the contingent beneficiary as well if you have named such a person.

If you have gotten divorced or if that individual has passed away, this could generate serious problems in the event that your life insurance policy proceeds become active. On an annual basis, sit down and review all of your retirement accounts, brokerage accounts, and any other information like a life insurance policy in which you would name a beneficiary. It is pertinent to update these details regularly and particularly when you have any major life change.

Talk to your Georgia estate planning lawyer to learn more about your options.

 

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