If you’ve been preparing for having to care for a loved one or deal with their passing, chances are good that you’ve at least heard the terms “ownership” and “beneficiary.” Perhaps, though, this is your first foray into the world of elder law and all the fancy terms it includes, so let’s quickly go over each of those things right now.
Beneficiaries are those people or other entities whom you leave things to in your will. In talking about life insurance, they are the ones who inherit any proceeds from that life insurance policy. Most generally, someone will say that their spouse, if possible, should be the beneficiary, or their children if the spouse is deceased.
You should be aware that any proceeds you leave to your spouse at the time of your death have potential to be lost (at the time of their death) or the subject of claims by any creditors, or they may even go to the surviving spouse’s new spouse if they get remarried.
Any children will be subject to the exact same circumstances as a spouse. However, a guardian may gain access to the funds if the children are minors. If you want to designate your estate as the beneficiary, you can. Although you need to be aware that this will cause any proceeds to go through the probate process. The proceeds could also potentially be subject to claims via creditors along with increasing the taxable estate for estate tax purposes.
If you or someone you love needs assistance with Elder Care law issues, call 856-281-3131. Let us help ease your stress and give you a plan.