QUESTION
Will a life insurance policy taken out on me by my son be considered part of my estate.
Asked on May 03rd, 2012 on Estate Planning - New Jersey
More details to this question:
I have a standard will, leaving everything I own (including my house) to my four children. My son would like to take out a life insurance policy on me so that he can purchase my home from his siblings, in the event of my death. Would this policy be considered part of my estate, even though he is initiating it and paying for it? Is there a better way to accomplish this?
1 ANSWER
2 Awards
No - it would not be part of your estate because your son will be the owner of the policy. However, in New Jersey, the person buying and paying for the policy has to have an insurable interest in the person they want to insure. In some states you can buy and insurance policy on another person with out any relationship or interest, but in New Jersey there has to be an insurable interest.
Answered on May 04th, 2012 at 1:43 PM
Diana L. Anderson, Certified Elder Law Attorney This response is not legal advice and does not establish any form of attorney/client relationship