RE: As the beneficiary of life insurance do I have to spend the money a certain way?

I was the beneficiary of my ex-husband’s life insurance. I gave some of the money to his children and some of it I have kept back for other children. The children who still have money under my control are complaining about the fact that I won’t just give it to them and try to “guilt” me into just handing them the money. I am trying to do what I think their father would do if he were alive and had the money. Since I was the beneficiary do I have to give them anything at all? They seem to think because he was their father and we were divorced that I do not have the right to say what happens to the money and since I have set it aside as theirs they can just do with it when they want and as they want. I just don’t want the money to be spent frivolously and then when they need it there will be none there.

aj Silver Asked on January 29, 2021 in Business & Finance.
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3 Answers

Life insurance is paid to the beneficiary to do with as they wish. You are absolutely not obligated to pay anything to anyone. An estate is a different story, but life insurance is independent of the estate (sometimes used to state planning though).

Here is what I would say; If he wanted them to have money immediately, he would have made them the beneficiary on a policy. Since he did not, they will get it when you decide to give it to them.

They cannot sue you; a lawyer wouldn’t take the case because they wouldn’t win.

Star Answered on January 29, 2021.
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