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Author: reallyalldone Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75383  
Subject: Good article on beneficiaries Date: 4/5/2014 12:50 PM
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From the WSJ(and I did my best to find a link to it for nonsubscribers - http://online.wsj.com/news/articles/SB1000142405270230384780...

Cross-posting to Estate Planning and Inheritance Strategies.
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Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74707 of 75383
Subject: Re: Good article on beneficiaries Date: 4/5/2014 3:22 PM
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I think the main message is to be careful to keep your beneficiaries up to date especially after any changes.

But this can be trickier and more subtle than one might imagine. The company I retired from provides term life insurance for its retirees. They were acquired by another company two years ago.

I just received notice that now that acquired company has been integrated into acquiring company, I need to enter my beneficiaries in their records. It was not automatic.

I think this is lawyers taking no chances, keeping one set of records rather than transferring old data that may be out of date, etc., plus a reminder to bring those records up to date.

But it is yet another detail of subtleties that can make your records obsolete.

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Author: buzman Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74718 of 75383
Subject: Re: Good article on beneficiaries Date: 4/7/2014 1:00 PM
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>>>>
I just received notice that now that acquired company has been integrated into acquiring company, I need to enter my beneficiaries in their records. It was not automatic.<<<<

Your records would not necessary be obsolete.

If the new insurance company showed no beneficiary then the death benefit would likely pass the terms of your will. Each state could be different.

If your spouse was the bene and you were still married then the death benefit would go to him or her. However, the death benefit would be subject to probate and the attendant costs.

Bottom line: Update beneficiaries and review.

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Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74721 of 75383
Subject: Re: Good article on beneficiaries Date: 4/7/2014 1:16 PM
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You would think if a death occurred before the acquiring company's records were brought up to date, they would honor the beneficiaries designated previously.

But it can get more complicated especially if the term insurance is under company contract and a new insurance company is now involved.

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