When people have their wills prepared and signed, they often forget to update their beneficiaries on their life insurance. Each person should calender a review of their wills and life insurance on a regular basis. Assets and relationships can change more quickly than one might expect over time.
It is important to remember that the proceeds from life insurance policies are not part of estate in Louisiana. Therefore, unless your beneficiaries pre-deceased you, or your estate is named beneficiary, your will not govern who gets the proceeds of your life insurance.
Life insurance is a contract that an amount of money is paid to someone upon your death. Because proceeds result from death, it is easy to confuse it to be part of your succession. If the person you named as beneficiary survives you, your will won’t override your beneficiary designation with regard to your life insurance proceeds.
You especially need to update your life insurance if you are recently divorced and your ex-spouse was listed as a beneficiary on your life insurance.
Should you have any questions, you should contact an experienced estate planning attorney.