Question

Jack named Nancy as his Life policy beneficiary. Nancy dies but Jack forgot to name another beneficiary. Several years later, Jack died but Nancy was still named as beneficiary. What will happen?

Answer 1

If Nancy dies and Jack forgot to name another beneficiary at the time of his death, the policy proceeds would likely be paid to Jack's estate or his heirs as determined by the probate court.

Step-by-step explanation:

Your explanation is accurate. If Jack named Nancy as the beneficiary of his life insurance policy and Nancy predeceased him without Jack updating the beneficiary designation, the policy proceeds would likely be directed according to the contingent beneficiary designation or, in the absence of one, to Jack's estate. In this scenario, the proceeds might be distributed based on the laws of intestacy or the terms of Jack's will, if he had one.

The exact outcome can vary depending on the laws of the state where Jack resides and other factors related to his estate planning. It underscores the importance of regularly reviewing and updating beneficiary designations to ensure that the intended recipients are aligned with the individual's current circumstances and wishes.