Is It Easy To Change Beneficiaries?

chrissa1 | 18:10 Sun 14th Jan 2018 | Law

12 Answers

Having split up permanently from his wife, my son wants to ensure that his life insurance policy pays any claim to his two little girls.

Can this be done via the insurance company by my son contacting them and changing the wording? TIA.

Can I Get A Copy Of A Will In Scotland.

Driving Quiery

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bednobs

does the policy pay out to a certain person or just to the estate? If just the estate, he'll need to change his will too

mikey4444

In my experience, the proceeds of an insurance policy is paid tax-free and to the estate of the deceased.

woofgang

Yes its that easy in most cases.
There may be an issue with their age though, he might need to put it into a trust or name an adult to act for them.

chrissa1

Question Author

He hasn’t made a will yet. I know he should and so does he. What about the insurance policy though? Can that be changed?

chrissa1

Question Author

If his soon to be ex-wife gets her hands on it, she will blow it.

ubasses

You can nominate anyone you like to be the beneficiary of a life insurance and I don't know of any reason whey it cannot be changed.
It will become part of his estate for IHT purposes.
The only problem I can see is if it was taken out at the time of a Mortgage the Mortgage Company will have a registered interest and will take priority.

woofgang

My snswer stands, but of course the definitive answer will come from the insurance company.

chrissa1

Question Author

Thanks. They don’t have a mortgage. I understand that there will be a need for a trust to be set up and his sister could be the “next of kin/responsible adult.

Through the insurance company??? Or a solicitor?

woofgang

Is it just for the insurance policy? I’d ask them first what they require. It may be enough to set up an account with the sister’s name on it that the children can access at 18.

chrissa1

Question Author

Yes, just the insurance policy.

ubasses

Have a read through this Chrissa, you should get the answers to most of your questions.
https://www.reassured.co.uk/life-insurance/putting-your-policy-in-trust/

Peter Pedant

I side with the people who say you apply to the insurance and ask them for the form that allows you to appoint a beenficiary outside the will

I did this for death in benefit pay out
before I retired

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