I purchased a substantial amount of life insurance and named my spouse as the beneficiary. Why should we need wills if the insurance proceeds will be paid directly to my spouse?

Often, younger married couples who are just beginning to build estates choose to buy large amounts of life insurance to cover the possibility of an unexpected early death. At younger ages, life insurance coverage should be relatively inexpensive. It makes good sense to buy it when there are minor children to be considered. However, it is a mistake to count on life insurance alone. If both parties die at the same time without wills, their minor child(ren) stand(s) to inherit substantial life insurance proceeds without a guardian or trustee to manage them. The child(ren) could wind up with a court-appointed guardian who the parents may not have chosen. A properly drafted will can eliminate these risks.

Posted in: Estate Planning and Elder Law