- 30,590
Just like with the internet, you can't believe everything you see on T.V. Have you heard about "Fake News"?
Not dsagreeingwith you, just pointing out that you can't believe everything you see on T.V.
Beneficiaries Per Stirpes
- Thread starter jacobtn
- Start date
Not dsagreeingwith you, just pointing out that you can't believe everything you see on T.V.
If we have must difference of opinion amount agents, can you imagine what might take place when you get neophyte HO personnel making decision on who to pay? Play say. Always spell out exactly how the money is to be distributed in the case of the death of one of the beneficiaries. 
- 15,041
I have always assumed it was per capita versus per stirpes, the highest level with a surviving beneficiary receives all the money unless specified otherwise. With the ability to designation contingent and sometimes even tertiary beneficiaries is the only one that makes sense to me.
You assume the primary beneficiary's children are contingent beneficiaries, how do you know they are? Perhaps the primary beneficiary's children were never to receive anything. With the ability to designate exactly who is beneficiary, there is no reason to use per stirpes unless directed otherwise.
You assume the primary beneficiary's children are contingent beneficiaries, how do you know they are? Perhaps the primary beneficiary's children were never to receive anything. With the ability to designate exactly who is beneficiary, there is no reason to use per stirpes unless directed otherwise.
And I learned this through real life experience and also the experience of being an agent. It does not have to be noted "Per Stirpes" for it to be done. I does indeed pass right on to the bene family members or their estate (same thing in the sense that I'm speaking of).
Are there exceptions to this, sure. But in the case of a straight laced no thrills situation, this is how it works.
- 4,875
Todd where did you get your law degree?
I made a phone call today and legal counsel said differently from what you are posting. Legal says it would not go to a primary beneficiarie's estate or kids, if the primary beneficiary passed before insured, unless it was written for the children/estate of the deceased primary beneficiary to receive any proceeds.
Legal said if there 2 primary beneficiaries, and one of them passed before the insured, and there was no beneficiary change forms filled out, then the other primary beneficiary would now receive 100% of the pay out.
BIG one
Expert
- 39
That's exactly what I learned on the Lifetime Channel, them beneficiaries always be trying to have the other beneficiaries knocked off so they can get the full amount.
- 15,041
That is what I would expect unless directed otherwise.
Then the lawyer you were talking to was a either a complete *** or he misunderstood you. The insurance company can't just decide that it will revert back to paying 100% to the 1st bene and leave out the estate or the children of the 2nd bene. Even common sense would tell you they can't just do that even if they wanted to.
As for lawyers, if you actually worked with several companies you might know this, but you can have an issue, call up 3 different insurance companies and sometimes get 2-3 different answers about an issue that can only have one answer. Each company will stand by what their lawyer says even when they are wrong.
When I say that I have experience with this, here is what I mean. I personally have been involved in 2 of these policies. My mother died at a "younger" age. She was one of the beneficiaries on her Aunt's policy and she was also one of the bene's on my Grandmother's policy. The other primary beneficiary was her sister. When my mother's Aunt and my Grandmother died (about 6 years apart), all of my Mother's proceeds were passed to us, her 3 children. There were no instructions written pertaining to Per Stirpes or Per Capita. Both insurance companies went straight Per Stirpes.
I have also seen this with my own clients. It has happened 4 other times that I can recall. Each time the insurance company automatically went Per Stirpes because nothing else was indicated otherwise.
I have gotten the answer each and every time I have called an insurance company to inquire. Was it just luck that that all decided to do this? I have my doubts.
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