Dear Mr. Tan,
I have a will that distributes half of my estate to my wife and the other half to my parents. I have an insurance policy that nominates my wife to receive 100% of the proceeds.
When I die, how will the proceeds of my insurance policy be paid?
REPLY
My understanding is that the nomination is more specific and it takes precedence over the will. However, i will post your question in my blog and see if a legal expert can comment on it.
For your estate (I mean property), here is a good link. Beware that your will may not change the re-distribution of ownership if the holding is joint tenancy. http://www.ramdwong.com.sg/news/jan01/ownership.htm
ReplyDeleteA will generally distributes what is "remaining".
ReplyDeleteIt depends on what type of nomination that was made:
Nomination made under Co-Op Act cannot be superceded by will.
Nomination made under sec 73, 49L cannot be superceded by will.
Insurer will pay to the nominee under 49M, if they have not been notified of subsequent nomination or any will made.
If the nomination was revocable (49M), the policyowner can just go to the insurance company and make another nomination without the consent of the previous nominee.
Alternatively, a valid will written in accordance to the will act can also supercede a revocable nomination. You can check with the insurance company the extact requirement.
eg. Insurance Company, Policy number, names of beneficiary (one, individual, entity) and portion.
49M revocable beneficiary, owner still retain living benefits, only death benefits are allocation.
sec73 and 49L, both living and death benefits are for the beneficary. Consent has to be obtained before making changes to such policy.