Life insurance beneficiaries

[Anonymous]

Both of my adult children are working FT in good jobs that provide life insurance. Stepson is married. Obviously his wife is his beneficiary. However, he hasn’t picked a contingent beneficiary in case he and his wife both died. DD is not married. She named me as beneficiary in case she suddenly died before me. We also have two children that are minors. There’s also a group of half-siblings (not my kids) who are 18 or below. Is it overstepping for me to suggest that the siblings/half-siblings be made beneficiaries (or contingent beneficiaries)?

[Anonymous]

Yes, definitely weird and inappropriate. It's their money to do as they wish, even if that means letting those proceeds become part of their estate.

The only normal way to do this is to explain to them how beneficiaries and contingent beneficiaries work and then they can decide whether and who to name as contingent.

[Anonymous]

Nope, I wouldn’t say anything. If your DD dies, you will receive the benefit. At that point, you can give that $$ to whoever you want (kids, half sibs or the mailman).

[Anonymous]

What happens to an estate if both spouses die and there’s no kids?

[Anonymous]

Anonymous wrote:What happens to an estate if both spouses die and there’s no kids?

Depends on if there is a will. If not, the state laws of intestacy apply. It also matters who dies first.

[Anonymous]

My husbands sister was his beneficiary until we got married. When my single son asked us recently what he should do because the whole concept was new to him, we told him that it was his decision, but one option was his sister, until he was in a serious enough relationship to make his partner his beneficiary. He is very closed to his sister and liked the idea.

We also explained that he could just leave it to his estate, or a charity. And that if he named us, we could just give it to his sister all at once, because of gift tax rules.

[Anonymous]

Anonymous wrote:My husbands sister was his beneficiary until we got married. When my single son asked us recently what he should do because the whole concept was new to him, we told him that it was his decision, but one option was his sister, until he was in a serious enough relationship to make his partner his beneficiary. He is very closed to his sister and liked the idea.

We also explained that he could just leave it to his estate, or a charity. And that if he named us, we could just give it to his sister all at once, because of gift tax rules.

This is the right way to do it. Explain the options but do not advocate for a specific outcome.