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Q

I'm one of three beneficiaries on my mom's life insurance. What must I do to forfeit my share of the money if I don’t want it?

A

Check decline boxWhile most beneficiaries wouldn’t think of turning down money, it is possible to waive your claim to the proceeds if you so desire.

To forfeit your share of the proceeds from your mom’s life insurance policy, contact the life insurance company and make it aware of your intentions. 

Each life insurance company will have its own process is for waiving rights to your portion of the benefits. You may be required to send in a letter to the life insurance company or fill out a waiver form.

if you waive your rights to the money, the life insurance company will treat the situation as if you were a beneficiary who passed away immediately before the insured, your mother. The life insurance benefit will be paid out the other beneficiaries accordingly.

If you’re forfeiting your share of the proceeds due to worries about taxes, be aware life insurance benefits are not taxable.

Last updated: Feb. 23, 2015