Legal Question in Wills and Trusts in New Jersey
Will & beneficiary
My Uncle has made out a very simple will leaving my brother and myself everything to be split equally. My Uncle has named only myself as the beneficiary on his life insurance policies - wanting only me to receive the money from the policies. Does he need to make any adjustments to his will to ensure that only I receive the life insurance monies? Am I obligated to share this money with my brother and or his family? This is not want my Uncle wants.
2 Answers from Attorneys
Re: Will & beneficiary
The life insurance is a non-probate asset and does not pass under the will. You are correct that this will create an unequal distribution as between you and your brother. I don't see a problem with this, especially if the insurance beneficiary form was done after the will was signed, meaning that clearly your uncle intended an unequal distribution. Your uncle may want to write a note and keep it with his important legal papers, stating that it is his intent to leave you the insurance even though the will provides for an equal distribution.
Re: Will & beneficiary
A Will determines how the probate assets are treated. Since the life insurance names you directly as a beneficiary, you would be entitled to the proceeds. Likewise, if an account were a joint account, the survivor would receive the account on your uncle's death, regardless of what is stated in the Will.
The best thing you can do is encourage your uncle to go to a good estate planning and tax attorney to make sure his estate is set up properly.
I hope this helps!
Ron Cappuccio
http://www.saveyourestate.com
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