If you are single, you may designate anyone you choose as your beneficiaries, such as a family member, friend, charity, or organization.
For SSS members who are single and have no children, the parents typically become the default secondary beneficiaries. If the parents are deceased, it becomes more complicated. The member cannot simply designate anyone outside the immediate family (children, spouse, parents) to receive full death benefits.
Immediate family as beneficiaries
Anyone who will suffer financially by your loss is likely your first choice for a beneficiary.
A lot of people name a close relative—like a spouse, brother or sister, or child—as a beneficiary. You can also choose a more distant relative or a friend. If you want to designate a friend as your beneficiary, be sure to check with your insurance company or directly with your state.
And you shouldn't name a minor or a pet, either, because they won't be legally allowed to receive the money you left for them. Naming your estate as your beneficiary could give creditors access to your life insurance death benefit, which means your loved ones could get less money.
If there is no spouse the benefit will be paid, in equal shares, to your surviving children; if none, then to your parents; if none, then to your siblings; if none, then to your estate. The same process would be followed if your designated beneficiary is no longer living at the time of your death.
Select a beneficiary based on the likelihood of a permanent relationship with you. Many people may select a girlfriend or boyfriend in lieu of a spouse. While at the time this may seem like an excellent decision based on your undying love for one another, be aware that all relationships are subject to change.
If you're single with no children and you aren't planning on having children down the road, it's still a good idea to think about estate planning and writing your last will and testament. You can use this individual will to say what happens to your possessions, accounts, pets, etc.
Ineligible Beneficiaries: Minors: Generally, minors (individuals under the age of 18 or 21, depending on the jurisdiction) cannot be named as direct beneficiaries of a life insurance policy. In such cases, a trust or custodian may be designated to manage the proceeds until the minor reaches the age of majority.
If you were any of the following to the original owner of the IRA you inherited, you are a non-spouse beneficiary: Child of the original owner. Grandchild of the original owner. Sibling or other relative of the original owner.
The contract will go into probate if there isn't a beneficiary on file. A will would provide instructions to probate court of the wishes of the deceased. The probate process can vary depending on state law.
If the beneficiary name is incorrect, your transfer will not go through and the money will be returned to the original bank from where it was transferred.
A primary beneficiary is a person or entity named to receive the benefit of a will, trust, insurance policy, or investment account. More than one primary beneficiary can be named, with the grantor able to direct particular percentages to each.
The same can be said for very close friendships. If you are unmarried, consider choosing a close family member like a parent, sibling, or child. Consider your potential beneficiary's needs. An easy way to select a beneficiary is to also take into consideration your potential inheritor's needs.
You can name literally anyone to be your beneficiary. You can have multiple beneficiaries, and you can designate certain individuals who will receive specific assets, including items that may have particularly sentimental value.
For example, if a person names their estate as a beneficiary of their life insurance policy, not only does this put the asset into the jurisdiction of the probate court, but it also subjects the funds to your creditors and may be used very differently from what you had in mind.
This means that an executor can override a beneficiary's wishes if those wishes contradict the expressed terms of the will, do not comply with applicable laws, and the executor acts in the best interest of the estate and its beneficiaries.
You can designate anyone to be the beneficiary of a life insurance policy, and doing so allows you to provide for your partner without having to jump through the hurdles that unmarried couples face.
If you do not designate a beneficiary, your spouse automatically inherits your 401(k) upon your death.
Regardless of what your will says, whoever is named as the designated beneficiary on each account will receive that asset.
Yes. Banks may require the beneficiary to provide a Social Security number (SSN) for monetary transactions. This requirement is intended to verify that funds are distributed to the correct designated individual(s) listed in a will, trust, insurance policy, retirement plan, annuity, or other contract.
So the answer is no, unless the beneficiary is changed, that is who will receive the money upon the account owner's death, regardless of a divorce.