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Review Your SQE 1 Practice Records

Examination Timing: 00H01M20S

John died intestate, but he had a life insurance policy naming his daughter, Lisa, as the beneficiary. How will the proceeds from the life insurance policy be handled?

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The proceeds from a life insurance policy with a named beneficiary pass directly to the beneficiary and do not form part of the deceased’s estate. This means Lisa will receive the proceeds directly, regardless of the intestacy rules that apply to the rest of John’s estate.

Key Point: Certain assets, such as life insurance policies with named beneficiaries, pass outside of the estate and are not subject to intestacy rules.

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