Tuesday, May 1, 2012

Divorce and Insurance

People getting divorced need to change the beneficiary of their insurance policies.  Most states provide that a former spouse will be considered deceased for beneficiary purposes, but bad results can still happen especially if the former spouses own insurance on each other.

Also, for new marriages a trust could serve as a vehicle for receiving insurance proceeds to benefit a new spouse, but have the proceeds pass to the children from a prior marriage.