Life insurance question

foxy06

Can someone solve an argument for me. If someone took out a life insurance policy many years ago and continued to pay it until their death and the beneficiary was say a parent or relative BUT had married long after said policy was taken out and in their will said all of my estate is to be left to spouse would the insurance policy still be paid to the person named on the policy or to the spouse as part of the estate?

grumpytrousers

person named in policy. Subject to correction on this, and so on, but...

it's like having a joint account. If i set up a joint bank account with my brother in 2000 and get married in 2005. I make a will in 2006 leaving my estate to my wife and die in 2009 the brother gets the proceeds of the joint account. It falls outside the estate. It's property that's been 'earmarked' for a person during ones life. Similarly with a life assurance policy. If you take it out and earmark the proceeds then that's it. It doesn't form part of the estate...

Geog

This is probably one that could go to court in the event of a challenge. A tricky one!

dats_right

I don't necessarily agree regarding it is inevitably going to end up in court, because really it is quite possibly a very black and white issue. If the terms of the policy are such that the proceeds are paid to a nominated person, it is probably the case that the benefit does indeed pass outside the estate, which means that the Will has no bearing on it and the proceeds pass to the person nominated notwithstanding terms of said will. There are some other relevant factors that might complicate things, so you should really make an appointment to discuss these matters with a solicitor, especially as the values of said life policy are likely to be significant and it is vitally important that your interests are fully protected.