Estate Law Questions? Ask an Estate Lawyer.
Hi and welcome to JA. Ray here to help tonight.
The primary beneficiary can decline the life insurance as beneficiary and it passes through probate.It is also possible for the primary here to receive the funds and gift them to whoever you want and avoid probate. As primary here these funds are not taxable and it makes sense for you to claim them and gift them to whoever you want.You would owe no taxes on life insurance and no taxes on gifts up to $5,450,000 lifetime gift allowance.
It makes sense for you to just claim funds and gift them to whoever you want to have them and avoid probate.If they go to probate they pass by will or if no will laws of intestacy.But you can also just decline if you want here.These are your options.
I appreciate the chance to help you tonight.Thanks again.