The primary beneficiary of my life insurance is my wife, and the secondary is my son. What if all of us die in a single accident? Will the insurance payout goes into my estate and be distributed among whoever inherit that? Thanks.
Since this is a tax group and not a legal group, I'll start off by saying that the life insurance death benefit will probably not be subject to income tax irrespective of who receives it under you scenario.
In addition, whoever receives it, the death benefit will be included in your taxable estate for estate tax purposes.
As for the legal issue, read your policy. I'd guess it will go to the estate of your son and be distributed among his heirs. But it all depends on your policy.
Stu
Always good to have a further contingent beneficiary for just this reason. The simultaneous car/plane death prompted the question and need for that. Joe
"My interest" wrote
My understanding is that it could vary according to the wording of the insurance policy, but also as to the state law where the plane wreckage is. So it could boil down to who the coroner declares is dead first and in what order he makes those declarations.
So readdress the issue with your attorney to account for all possibilities.
Depends upon whether the policy has a common disaster clause and/or your state has adopted the Uniform Simultaneous Death Act and what's in a decedent's will regarding simultaneous death with a named heir.
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