For the most part, as long as you have signed and officiated the documents, anyone can be named as the beneficiary on an insurance policy. They may also name spouses, parents, brothers and sisters, aunts and uncles, you can even name your best friend as a beneficiary.
Can a beneficiary be a family member?
A beneficiary can be a person, charity, business or trust. If the beneficiary is a person, they can be a relative, child, spouse, friend or anyone else you happen to know. As some agents like to say, you can even name your “secret lover” as a life insurance beneficiary.
What happens if you forget to name your beneficiaries?
If you specifically name each of your children as beneficiaries and forget to add the new addition to your family, they could be left out. If your primary beneficiary dies before you, your contingent beneficiary will now be the recipient, so be sure to update both primary and contingent beneficiaries.
How are assets transferred if there is no beneficiary?
Individual Name (with no designated beneficiary): Assets transfer through probate, then according to decedent’s last will, or, if no will, according to state intestate succession laws. Estate: Same as Individual Name above through probate. Joint Tenancy: Assets transfer directly to named surviving owner (s).
Who is next in line to inherit assets from a sibling?
If there are no surviving spouse, domestic partner, nor children, then their surviving parents are next in line. Surviving siblings inherit assets only if there are no surviving spouse, domestic partner, children, grandchildren, nor parents.
Can a parent designate a separate beneficiary for each child?
Sometimes parents will designate a separate child as beneficiary for each of their accounts. Over time, the ending balances of these accounts can differ significantly with one child receiving much more than the other, which may not have been the parent’s intention upon death.
