Legal Question in Wills and Trusts in Georgia

No.

No.

I was involved in a case like this a long time ago. If you are required by your divorce settlement to keep a life insurance policy in force, then you should do it but that is only my legal opinion. If not, you will have passed on to the great hereafter, but do your loved ones a huge favor and do not let your only legacy be a lawsuit.

As between the insurance company and the beneficiary named on your life insurance policy, the insurance company will pay the funds to the named beneficiary or possibly into court. Then your ex-spouse or child is going to sue the beneficiary and they will fight about who is entitled to the money. Your beneficiary may ultimately win the battle, but may have to spend money in legal fees from the insurance proceeds to do so. In a worst case scenario, the ex-spouse or child from the first marriage may also sue your estate for breach of the divorce agreement by failing to maintain a life insurance policy. If there are assets in the estate, they may be able to tap those assets.

Read your divorce agreement and see what it says or go to a family law attorney and have him/her explain it to you. Is there a duty to maintain life insurance throughout your life? Or only until your child turns 18 or until a certain amount of alimony is paid to your ex-spouse? If the latter, then wait till the event occurs then change the beneficiary. If its for life, then keep the policy the way it is and pay for a second policy leaving the benefits of that second policy to your new beneficiary. You will keep everybody happy this way.

Or you can be like the guy in the case that I handled. He ran off with the neighbor, got an insurance policy and made his new child with the neighbor the beneficiary of that policy, and then died penniless of a terminal illness. The new child got the dough and the ex-wife and child got zilch, but only after the parties spent thousands of dollars litigating the case up to the appeals court. Moral of the story? Lawyers win again and everyone else was a loser.