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I’m the solo beneficiary of my fathers life insurance and there is a will that has me as executor of his estate…does that that include life insurance monies? Or does it only include property or funds that have no selected beneficiary.

5 Thoughts on I’m the solo beneficiary of my fathers life insurance and there is a will that has me as executor of his?
  1. Reply
    jlf
    April 19, 2013 at 2:16 am

    The will and estate are separate from the life insurance. The insurance benefit is paid directly and only to the named beneficiary on the policy – the will has nothing to do with it.

  2. Reply
    Iffy
    April 19, 2013 at 2:43 am

    This is where it gets tricky. The value of the life insurance is added to the total of his estate for inheritance tax purposes only but you contact and cash in the policy as beneficiary.
    Since you are the executor it does make it easier to settle the estate.

  3. Reply
    wizjp
    April 19, 2013 at 3:17 am

    Life insurance funds pass outside of probate

  4. Reply
    the kid
    April 19, 2013 at 3:42 am

    Life insurance is not part of the estate.

  5. Reply
    RetirementGuru
    April 19, 2013 at 4:36 am

    Only PROBATE assets are distributed to beneficiaries in accordance with a decedent’s will. Probate assets include: assets owned, solely, by a decedent, in his own name, and a decedent’s interest in property held as Tenants in Common.

    Property with designated beneficiaries, like life insurance, annuities, and IRAs, for example, are not probate assets and are paid directly to the named beneficiaries. The will is ignored.

    Other ways of holding title to property to avoid probate include; Joint Tenants with Rights of Survivorship (JTWROS); paid to the surviving owner, automatically, by “operation of law;” Payable on Death (POD) and Transfer on Death (TOD) accounts are paid to the named beneficiaries, as well. Again, the will does not apply.

    Hope that helps.

    PLEASE VOTE to avoid a TIE. On behalf of all of your responders, who take the time and effort to help questioners in this free Yahoo! community, THANK YOU in advance for taking the time to choose your “Best” Answer. We really appreciate it.

    DISCLAIMER: While the information in this response was obtained from sources believed to be reliable, its accuracy and completeness cannot be guaranteed. The opinion voiced in this answer is for general information only and it shall not be construed as tax, legal, or investment advice for any individual, nor shall it be considered a solicitation for business. Questioners are urged to consult with their professional advisers before making any decisions regarding their finances.

    Bradley Mann, CFP®, EA, BCE, CFS, AAMS
    Certified Financial Planner™ Practitioner
    Enrolled Agent | Admitted to Practice before the IRS
    Board Certified in Estate Planning

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