Removing ex-spouse as policy beneficiary
When a person obtains a life insurance policy & names his/her spouse as a beneficiary under the policy, by virtue of Section 73 of the Conveyancing Law & Property Act (CLPA), a statutory trust is created in favor of the named spouse.
When such a trust is created, it CANNOT be revoked or extinguished, EVEN IF you make a will. Therefore, writing a will to change the beneficiary would be ineffective.
What are you to do then if you are going through a divorce?
1) Get the consent of your spouse to being removed as a beneficiary. Unless he/she consents to the removal, the named spouse cannot be removed as a beneficiary, even if you divorce thereafter.
2) Make an application to the Family Court to ask the court to remove your former spouse as a beneficiary. Your spouse, however, is at liberty to contest the application. The court will look at all the circumstances of the case & may then grant your application if it deems fit, especially if granting the application would be just & equitable under the circumstances.
Note: Advice provided in this column is NOT meant as a substitute for comprehensive professional advice. Please seek legal advice for more details.
