The beneficiary is the person
indicated in the life insurance police to receive with your death the amount of
the insurance. You can designated a beneficiary
(your spouse for example), or you can leave the money to a trust?
If you choose to leave the money to your having right, the money
will be fixed with expenses of homologation
at the time of the payment of
succession. If you choose
a trust, you must take care to inform a tax adviser.
If you indicate a beneficiary, the money does not enter
in your succession, but is directly versed to the person
or the organization that you
indicated. The beneficiary does not have homologation expenses
to pay.
PROTECTION AGAINST
CREDITORS
Depending of who is the designated beneficiary, the assured capital can be or not under
the shelter of the creditors. Provincial and States insurances laws
stipulate that if the beneficiary is
a spouse, a child, a small-child, the
father or the mother, the assured capital
can be seized by creditor. Within Quebec, the
beneficiary must be related to the police holder.
In the other provinces, it must be related with the policy-holder. In US it depend on wich states.
This provision applies to the adoptive children in the majority of
provinces, but not with an ex-conjoint,
except if this one were
indicated profit irrevocable.
IRREVOCABLE BENEFICIARY RECIPIENT
You can designate a beneficiary recipient
or a trust on a purely irrevocable basis.
That means that as the holder of the
police, you can't change or revoke the beneficiary recipient without
consentment. The assured capital is
protected from your creditors and it
do not enter into your succession.
In Quebec, the spouse is considered
like an irrevocable recipient
but, in the event of divorce, it loses
automatically this statute. | 