Life Insurance Beneficiary Transfer? (1 Viewer)

[Turk Tide]

Quick question.

My father (divorced from my mother) passed away and my brother and I received word that he had a life insurance policy we were not aware of. It turns out my uncle was named the beneficiary back when my brother and I were minors and it was never changed.

My uncle wants my brother and I to have the money. Is there anyway for him to transfer the beneficiary title?

He could just receive the money and then give it to us, but then we would be subject to gift tax, no?

and then the money, as it passes through my uncle, would be listed as an asset for him and we would have to worry about Medicaid's 5-year lookback period if my uncle would go into a nursing home in the next 5 years, no?

Any help is appreciated.

Chris

 

[Doctor Detroit]

I have heard you can contest a beneficiary designation because of oversight. If your uncle is agreeable it certainly would seem to be possible.

You probably need to speak to an estate lawyer.

 

[Johnny Rock]

Congrats on having a cool uncle.

 

[Quez]

Did this uncle ever hook you up with booze at family functions?

 

[mr roboto]

Isn't there a 1 time gift tax free :dufrense:

 

[ZenMaster]

My wife works in insurance/benefits and this is what she said............

Not sure if this varies by state, but your uncle may be able to decline the insurance benefit. In that case, if the will is uncontested the order of dispersal is (1) spouse, (2) children, (3) parent, (4) sibling. It will go through probate, the same as if he had not declared any beneficiary.

Definitely talk to an estate lawyer for actual legal advice.

 

[Turk Tide]

Thanks fellas. Gives me some ideas to talk to the lawyer about.