What NOT to Include in Your Will
We've recently discussed some important reasons every adult in Texas needs to make a Last Will and Testament, regardless of marital status or whether children are involved. Some obvious items to address in a will are property distributions and preferences as to guardianship of children, if any. But, there are a few common property items you do no need to address in your will. In this article, we will discuss one of those items and why you can leave it out of your will.
If you maintain life insurance on your life it will pass to the beneficiaries named on your life insurance policy immediately upon your death. Because life insurance proceeds pass immediately upon death, the proceeds will not be part of your estate. Since life insurance proceeds will not be part of your estate, you do not need to distribute the money in your will.
The ONLY EXCEPTION to this rule is if during your lifetime you make your estate the beneficiary of your life insurance proceeds. (E.g., ‘payable to the estate of your name.') In that case, your life insurance proceeds will become a part of your estate upon your death and distribution of the proceeds should be addressed in your will.
To ensure your loved ones receive the benefits that you desire upon your death, contact an experienced Bryan-College Station, Texas estate planning attorney to explain your options and help you prepare a Last Will and Testament. The Peterson Law Group is committed to finding solutions for our clients. Call us today to schedule a consultation at 979-703-7014 or fill out our online contact form.