Hi..my new partner and I have discussed getting married and we have 5 kids between us. Our previous partners have already remarried and one has a new baby. Is it possible to set up life or disability insurance where only my new partner and I or the kids can access the funds should anything happen?
Situations like this can be very complicated and messy and I would very much encourage you to speak to a good estate planning lawyer to ensure not only your new spouse is looked after but so is your children if anything were to happen.
To answer your question, yes, you can. A stand alone life insurance policy can have a nominated beneficiary or, if held inside superannuation, you can have someone as the binding death nomination. This has the funds paid directly to the person, without it being distributed through your estate. With any money in an estate, it can be contested.
This should happen regardless of if you get married to your new partner. Just because you aren't married, doesn't prevent someone contesting your estate. They could say easily say that you are in a genuine defacto relationship and they were dependent on you.
I'm sure there are some good estate planning lawyers on here that might be able to help you further.
Basically there is a form called a binding nomination form which sets out who the beneficiary(ies) will be in the event of your death. The binding nomination form is usually only required for the death benefit (I.E. Life Insurance) as TPD is paid whilst you are still alive. You can nominate whoever you like as beneficiary and you can also nominate a certain percentage to each beneficiary.
If you already have insurance in place; you would simply need to contact your insurer and ask them for a binding nomination form. If you do not have insurance in place then this form is completed as part of your application for insurance.
I would also recommend that you seek the advices of a solicitor and ensure that you have an updated will.
Please feel free to contact me on 0414 727 308 if you require assistance with insurance cover. I can also point you in the right direction with a suitable solicitor if you do not have one to assist you with your will(s)
Good luck with the wedding!
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